PPP procurement encourages innovation through the development of performance-based output specifications drawn from the requirements of program service objectives, rather than being based on detailed, highly specified design. The added flexibility provided by this approach, in addition to the competitive nature of the bidding process and financial incentive, encourages PPP partners to develop innovative solutions in all aspects of a project, from design and engineering through to decommissioning.
To estimate the magnitude and potential value of these PPP benefits, a comprehensive and detailed quantification and procurement options analysis is necessary as part of a broader business case process.