Valuation After PPP Contract Award

Observers maintain that VfM analysis should be assessed even after the contract is awarded so that prices and risks may be readjusted as necessary to maintain VfM. However, it may be impossible to compare the actual costs of the project with the original PSC as the PSC quickly becomes obsolete; the original PSC is only valid before the PPP implementation (Edwards 2004; Stambrook 2005). Presumably this comparison cannot be achieved because the original PSC would represent some ideal conditions that could have changed if the public sector implemented the project, and the actual PPP costs represent real conditions. Furthermore, the value of the PPP will continue to change over time, and the actual value will be realized when the lease period expires, which, in the case of recent PPP projects in the United States, will occur many decades from today.