PPP projects are very different from traditional and DB methods. Since private finance is involved it is very important to develop a business case for the project and make sure that it is viable and what some call "bankable". Traditional projects had to be politically attractive and approved, but PPP projects need to be financially attractive.
Other developments that differ from non PPP projects include the following:
• Develop some form of a comparison such as a Public Sector Comparator (PSC). There needs to be some form of comparison that PPP projects are better than traditional methods. This can be in the form of a simple comparison or one that requires a formal PSC
• Begin to transform existing technical specifications into "Performance Specification" & "Outcome Based Criteria". It is an essential part of the PPP model and can be basis of potential innovations
• Also approving Alternative Technical Concepts (ATCs) should be a formal practice in order to approve new and untested solutions
• A "Payment Mechanism" should be developed and one that reduced risks and costs
• Developing a risk matrix for technical, financial, and project risks
• Hiring financial, legal, and technical experts
• Determining the road condition after contract expires or a "hand-back clause". This is important to define the technical conditions and quality standards that the road characteristics will be returned back to the road authority. It is recommended that some financial fund be escrowed to account for any lacking quality during the last five years of the contract. This might be considered a guarantee that the project would be returned in good order or the escrow fund pays for needed corrections