D.3 Initial promises

Each participating jurisdiction was asked to provide background documentation on the initial promises communicated for their projects. Information was sought by way of business cases (with extract pertaining to project costs, service delivery outcomes, KPIs and performance standards), key media releases, major project documentation released to the community and other relevant official communications such as Auditor General reports. From the materials provided (which were not always complete from each jurisdiction) a detailed analysis was undertaken of promises made, and of commentary from sources external to the project on the achievement of such promises.

Tables D.1 to D.4 provide a review of the original promises or expectations. Common themes emerging from analysis of these expectations against actual outcomes reveals the following were constant across projects and jurisdictions:

• quality buildings and facilities that incorporate best international thinking

• performance of the contractual requirements that set a higher standard of services than can otherwise be achieved

• whole-of-life expertise to enable the facilities to be maintained at a high standard

• value for money (VFM), and

• professional management of Facilities Maintenance that allows key operational staff (service providers) to focus on their primary service outcomes.

In terms of achieving these promises or expected outcomes, strong evidence was found to support the following findings.

Quality buildings and facilities that incorporate best international thinking: Ministerial media releases, Auditor General reports and awards received from industry are clear indications that this expectation was delivered.

Performance of the contractual requirements that set a higher standard of services than can otherwise be achieved: The testing of this expectation required feedback from service providers and was the focus of the questionnaires and workshops conducted as a part of this study. The research confirmed that this expectation was achieved.

Whole-of-life expertise to enable the facilities to be maintained at a high standard: The established contracts clearly detail in their scope of works and associated KPIs that whole-of-life thinking in terms of costs, maintenance and refurbishments are to be included. Contract management reports reviewed during the course of this study confirms achievement of works and KPIs.

Value for money (VFM): Reviews by the various Treasuries along with Auditor General reports and independent research reports have established that the VFM test was achieved at the time the contracts were let and then to the conclusion of the construction phase. There is also compelling evidence that the facilities are commissioned in a timely manner. Whether VFM was maintained over time was investigated in this study and the finding was affirmative.

Professional management of Facilities Maintenance that allows key operational staff (service providers) to focus on their primary service outcomes: This was a particular focus of this study and the results were overwhelmingly affirmative.

Tables D.1 to D.4, organised in the infrastructure categories investigated, have been compiled to illustrate the promises or expectations (which are paraphrased) made, and of the type of commentary that was found on the achievement of those promises.

Table D.1: Original promises - Health

Original promise (paraphrased)

Original promise (paraphrased)

• Improved services and clinical outcomes

• Synergies and cost efficiencies

• Capital Ending offsets

• Retention of specialised women's health care professionals

• A state-of-the-art hospital has been developed that include ICU services.

• Integration of clinical and non-clinical services in a metro hospital with improved efficiencies achieved.

• A hospital is so successful that following a positive report in 2008 from the Auditor General, where VFM was confirmed, questions were raised in the media as to why the facility was not bigger.

• Value for money achieved over the life of the facility.

• The hospital will be built to the highest standards and is to be maintained to the highest levels.

• Enable hospital staff to focus on what it does best - deliver health services to the local community.

• Create local jobs - construction jobs while it was being built, and then employment for doctors, nurses and other hospital staff when it opened.

A hospital set a new benchmark for regional care and has recently been expanded on the back of its success and the growth in demand for the services offered.

• A major focus on VFM

• Expected services detailed

VFM achieved and services are being provided in accordance with the contract

Table D.2: Original promises - Justice

Original promise (paraphrased)

Original promise (paraphrased)

A major focus on VFM

Expected services detailed

The project summary report has detailed how the PPP Contract has met all specified requirements and achieved VFM.

The general benefits sought were to improve the delivery of service outcomes from the assets by:

integrating asset and service design

incentivising whole-of-life design and asset management

allocating risks to the parties who are best able to manage them, and

only paying for services that meet pre-agreed performance standards.

In a 2016 report the Ombudsman confirmed that good facilities and whole-of-life outcomes were obtained but the Ombudsman was critical of the lack of transparency on costs. Questions in parliament later sought to show that clear VFM had been achieved.

Table D.3: Original promises - Education

Original promise (paraphrased)

Original promise (paraphrased)

Create an exciting education and training precinct in the heart of an internationally acclaimed metro precinct.

Quality facilities that are properly maintained over time.

Provided at a competitive price, also energy efficiency.

Achieve a re-development of facilities that integrates multiple educational sectors and specialist programs.

Innovation through the planning and service delivery skills of the public and private sectors.

Modern Schools will be built for modern learning styles

Flexible and adaptable learning spaces

Feature some of the most technologically advanced educational buildings in Australia

Be the state's flagship for international training - architecturally designed and learner focused campus

Redevelopment to ease students' progression from secondary to tertiary learning.

Integrate other services like childcare

Increase out of hours use of school facilities

Facility won international award 'Best Global Project' confirming the facility was setting new standards for education and training facilities around the globe.

Judged best example of a PPP the judges recognised it met the criteria best with its innovation, design quality and sustainability, financial efficiency and effective risk assessment and management.

Quote "these new facilities will allow the [educational institute] to deliver world-class training in some of the most technologically advanced buildings in Australia"

Design includes a range of integrated facilities

VFM has been achieved along with delivery of the creative facilities consistent with the long-term vision for education.

Deliver VFM that includes ongoing maintenance

Potentially lower costs and enhanced benefits

Costs over the life of the asset, such as maintenance and replacement costs, being considered when a school is built

Help to fast-track the building of new schools

Decreased energy costs due to improved design and construction

Obtain first-class facilities with energy efficiency measures that will achieve a four-star Greenstar rating from the Green Building Council of Australia

Auditor General reports that VFM has been achieved

Project summary details evidence of a clear VFM outcome.

Quality facilities delivered on-time or early.

Allow the principal and teachers to get on with the job of teaching rather than attending to building maintenance

Reduced Board and senior school staff time spent on property issues

Will allow school principals to concentrate on helping our students rather than working on the day to day maintenance of the buildings

This was a particular focus of this study and the results were overwhelming affirmative.

Table D.4: Original promises - Other

Original promise (paraphrased)

Original promise (paraphrased)

Major commercial development opportunity to revitalise the metro precinct and thus boost the state's competitive advantage.

The construction of a new convention centre of sufficient capacity to enable the city to compete for the important larger international convention market, to ensure the city maintains and expands is position in the international and national convention markets

The achievement of outcomes supported Auditor General reports, including integration with existing centres

Government media releases draw attention the successful attraction of international events

Flexibility in venue and venue management including energy efficiency

Deliver world class events

Leading urban entertainment precinct

Achieved a major commercial development and a stunning array of buildings

Contract enables flexibility to change operator without break costs at particular points in time

Achieved 6-star Green Star communities (v1) rating from the Green Building Council of Australia

Awarded LEED gold for sustainability by US Green Building Council