E.3.4 Modifications/Changes/Replacement

The modifications/changes/replacement core theme recorded only 14 per cent of total issues.

The four sub-themes of time, cost, governance and performance relates to the issues faced by service providers when changes are requested for both major and minor modifications impacting the facility or the replacement of facility equipment. It was observed that some service providers were severely concerned with the time it takes to get changes approved or implemented in PPP projects. The cost for modifications/changes was equally concerning to some service providers. Unlike, traditional projects where service providers could directly procure products or services "off the shelf", PPP project requires service providers to not only pay for the capital cost but also for lifecycle maintenance cost of the product. For example, a new $500 door fit out in traditional schools could cost PPP service providers an upfront $2,500 which will include the lifecycle maintenance cost of the door. This high upfront cost takes away financial liquidity from service providers.