Kevin J Bradley Welsh Infrastructure Conference Structuring a Successful Education Project Structuring a Successful Education Project Kevin Bradley Wednesday 25th March 2015

Contents What the 21st Century Programme hopes to achieve The changing face of Education Infrastructure design Lessons Learnt PPP v’s Public Procurement Conclusion

What the 21st Century Programme Hopes to Achieve What it should be about? Intelligent Efficient Procurement Public Sector Reform Strategic Medium to Long Term Planning Building and Maintaining Good Infrastructure Better Performing Services for the Taxpayer Public and Private Sector Working Together Community Benefits Long Term sustainable economic growth World Class infrastructure What it should not be about Free Infrastructure Finance Just Construction Privatisation, Outsourcing or Property Development A Method to make a Bad Project Good  x

The Changing Face of Education Infrastructure Design Circulation Space Ventilation & Overheating Staff & Student Space Catering & Dining Community Use Classrooms General Practical Flexible Learning Spaces Assembly Halls Sports Halls & Fitness Suites Entrance External Spaces Procurement Documentation

The Changing Face of Education Infrastructure Design Lasswade High

The Changing Face of Education Infrastructure Design Eastwood High

The Changing Face of Education Infrastructure Design Lasswade High

The Changing Face of Education Infrastructure Design Eastwood High

The Changing Face of Education Infrastructure Design Hub South East

Challenges Facing Education Infrastructure Design Clear Vision - be clear on your aspirations and the information to be requested at each of the stages Confidentiality - be clear on how you will address the concerns around confidentiality Fair Evaluation - spend the necessary time to determine the evaluation process and any de-selection stages Market Engagement - Consider a soft market testing of your approach Contract Terms –Standard Contract Terms Team - Strong Management and Advisory Team It can work and successfully and deliver your project

Lessons Learnt Success Factors Causes of Failure Good, strong consortium Appropriate risk allocation Available financial markets Effective procurement Project Implementation Causes of Failure More interested in new works than services Inflexible Contracts which don’t foresee market changes Poor Management Lack of mutual trust Poor Relationships

What Works – Innovation, Challenge and Knowledge Harness Best Practice Workshops Access Project Handbooks & Government Guidance Challenge Set the Level of Design and Project Scope Balance Value for Money & Risk Programme – Control and Drive Knowledge Actively Engage the Market Always Consider the Contract and Payment Mechanism Financial Close – FOCUS ON THE DEAL

PPP Versus Public Procurement Overview of Models

PPP Versus Public Procurement Typical PPP Structure Client Service Payment Debt Investment Funders SPV/Project Co Shareholders Loan Repayments Dividends Profits Invoices & Fees Other 3rd Party Provider Invoices & Fees Construction Contractor Invoices & Fees FM Operator Invoices & Fees Invoices & Fees Designers Specialist Packages Hard FM Soft FM

Conclusion Robust Pipeline Evolving Standard Form Contracts Exemplar v Reference Designs Competitive Dialogue Affordability Bid Response Documents

Thank You Kevin.Bradley@AECOM.com