B.6 Project Metrics
In terms of making sensible comparisons between Traditional and PPP project pools it is important to normalise the project data. It is well understood that the simplistic metrics in themselves do not create a true representation of a particular project due to the multiplicity and variety of changed circumstances and decisions that are a part of any major project. Nonetheless, statistical comparisons are useful indicators for comparative purposes and such comparisons are the objective of this study. A number of comparisons are made on a normalised basis for the reasons discussed below.
◀ Figure B.2 Sequence of data (milestone)
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Source: ACG/University of Melbourne. Notes: A, B, C, P refer to the decision dates of each milestone ; Sn is the forecast/actual starting date of the project and Fn is the forecast/ actual finishing date of each milestone.
Table B.2 Defintion of milestone terms
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Source: ACG/University of Melbourne
Milestone | Definition |
Original approval | The first formal approval of the project in terms of a realistic expectation that the project will proceed to market. It may be signalled by: • The approval of a capital budget for the project, frequently announced in government budgets; • Planning approval for a project to proceed; • Formal release of an expression of interest to the market by government; • A political announcement, often via a media release or the release of a strategic policy document. |
Budget approval | Formal approved estimate of a project prior to contracting with the private sector. This data may: • Be identical to the original approval; • Reflect details contained in a project's detailed business case; • Be a Public Sector Comparator as used for many PPP projects; • Be a revised estimate; Be identical to the contract sum, this is generally the case for alliance contracts where the parties develop the target cost collectively. |
Contract data | The prices and timing information agreed to in any contracts. |
Actual (final) | The actual costs and timing of the delivered project. This amount should include any settlement from disputes. |