While PPP project identification, procurement, and delivery often receive substantial atten- tion, the scan team quickly recognized the significance of the operating phase of any PPP arrange- ment. This is the period when the paying public uses the facility under private operation and determines whether it fulfills their expectations and needs. Indeed, PPPs can bring a customer focus to the facility, which in many respects differentiates it from other project delivery strate- gies-at least in the nations visited during the scan. When defining or scoping a PPP project, the primary focus in this seasoned international community is often on identifying and conveying the outputs desired. Project outputs are what customers focus on-reliable travel times, safe travel environment, comfortable ride, etc. Thinking first about what customers desire rather than developing a prescriptive definition of an asset is a major transition in practice. To do so requires beginning with the end in mind. In other words, defining and managing project user requirements and operational standards are integral to programming and procuring PPP projects.
This chapter examines practices for establishing performance measures that focus on desired project outcomes, managing the partnership with the private contractor during both the capital delivery and operations phases, and specifying handback provisions to make sure the facility is returned to the public sector in reasonable condition.