Lifecycle Efficiencies

Lifecycle efficiencies also can result in significant cost savings-up to 40 percent-for PPP projects.36 In an integrated, lifecycle approach to project delivery-such as a design-build or DBOM approach (see Glossary)-a single contractor is responsible for multiple project phases such as design, construction, operations and/or maintenance. This, in theory, gives the private contractor an incentive to reduce costs across a facility's entire lifecycle, for example through innovative design that reduces construction costs, high-quality project delivery that lowers the cost of maintenance and improvements, or up-front maintenance that avoids costly rebuilds down the road.37 Some analysts assert that integrated delivery approaches also can reduce delays due to collaboration between those responsible for different project phases.38