The final business case included analysis of the respective advantages and disadvantages of a traditional procurement model, based on a managing contractor arrangement, and a Partnerships Victoria procurement model.
The business case concluded that a PPP under the Partnerships Victoria model was the preferred procurement approach for the new RCH project as it would:
• maximise design innovation, as the design brief is output based rather than input based
• effectively transfer design, construction, commissioning and whole of life facilities based risks to the private sector
• improve hospital maintenance by effectively locking in minimum maintenance investment and standards which would be policed through an enforceable payment mechanism and abatement regime
• reduce whole of life costs by encouraging an optimal mix of upfront capital for construction and ongoing maintenance and refurbishment expenditure
• prevent scope creep due to the complex commercial structure and a perception that this would be less susceptible to scope changes and variations than a traditional public sector construction project.