Virginia Lawyer VA Lawyer June 2019 : Page-22

Menu
  • Page View
  • Contents View
  • Issue List
  • Advertisers
  • Website

Delivering Infrastructure Better, Faster and Cheaper: by Charles V. McPhillips Lessons in Shifting Risk and Reducing Life-Cycle Cost for the Public Owner I. Overview: Re-Engineering the Procurement Process to Save Taxpayer Dollars With our “crumbling national infrastructure” constantly in the news, I submit that, in ap-propriate circumstances, a properly struc-tured public-private partnership (P3 project) can save time and money for a public body that wants to deliver new and much-needed infrastructure to its constituents. The cost savings are particularly signifi cant when, as a wise steward of the taxpayers’ money, the public body weighs the total cost — and risk — of operating and maintaining that infra-structure over its useful life (or what should be its useful life). Under pressure in a budget-constrained environment to deliver a new road, a new school or a new municipal building, public owners often feel compelled to disregard the reality that most of a facility’s total life-cycle costs will be incurred in the “out years,” operating and maintaining the structure over its expected life. Here lies the Achilles heel in the tradi-tional public procurement process: the tax-payer bears the risk that the signifi cant costs of keeping a facility open for business over its useful life will exceed what is anticipated. Far too often nothing — or nothing realistic — is budgeted! The result is the staggering cost of deferred maintenance and neglected high-ways, bridges, schools and other public buildings. By hastening the early demise of our infrastructure, deferred maintenance necessitates major renovations and capital replacements, piling extra operation and maintenance costs upon the taxpayer that can range anywhere from 6 to 40 times what proper maintenance would have cost. 1 In large part due to the insidious cost of deferred maintenance, the American Society www.vsb.org 22 VIRGINIA LAWYER | June 2019 | Vol. 68 | CONSTRUCTION LAW AND PUBLIC CONTRACTS SECTION

Issue Articles

Issue List

June 2021

April 2021

February 2021

VA Lawyer December 2020

VA Lawyer October 2020

VA Lawyer August 2020

VA Lawyer June 2020

VA Lawyer April 2020

VA Lawyer February 2020

VA Lawyer December 2019

VA Lawyer October 2019

VA Lawyer August 2019

VA Lawyer June 2019

VA Lawyer April 2019

VA Lawyer February 2019

VA Lawyer December 2018

VA Lawyer October 2018

VA Lawyer August 2018

VA Lawyer June 2018

VA Lawyer Apr 2018

VA Lawyer Feb 2018

VA Lawyer Dec 2017

VA Lawyer Oct 2017

VA Lawyer Aug 2017

VA Lawyer Jun 2017

VA Lawyer Apr 2017

VA Lawyer Feb 2017

VA Lawyer Dec 2016

VA Lawyer Oct 2016

VA Lawyer Aug 2016

VA Lawyer Jun 2016

VA Lawyer Apr 2016

VA Lawyer Feb 2016

VA Lawyer Dec 2015

VA Lawyer Oct 2015

VA Lawyer Aug 2015

VA Lawyer Jun 2015

VA Lawyer Apr 2015

VA Lawyer Feb 2015

VA Lawyer Dec 2014

VA Lawyer Oct 2014

VA Lawyer Aug 2014

VA Lawyer Jun-Jul 2014

VA Lawyer Apr 2014

VA Lawyer Feb 2014

VA Lawyer Dec 2013

VA Lawyer Oct 2013

VA Lawyer Jun-Jul 2013

VA Lawyer Apr 2013

VA Lawyer Feb 2013

VA Lawyer Dec 2012

VA Lawyer Oct 2012

VA Lawyer Jun-Jul 2012

VA Lawyer Apr 2012

VA Lawyer Feb 2012

VA Lawyer Dec 2011

VA Lawyer Oct 2011

Previous  Next


Library