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A complete redesign of the project
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Southeast Asia. ​ Early 2020s. ​ You’re advising on a major transport PPP. ​ Billions on the line. ​ A metro line so politically visible that even the Prime Minister’s dog has an opinion on it. ​ Your consortium is ready. Equity committed. Contractors lined up. Designers caffeinated beyond medical guidelines. ​ The agency launches the RFQ. ​ Everyone smiles. ​ “Finally, a flagship project done properly.” (What a beautiful illusion.) ​ Then… the unexpected happens. ​ A new Minister arrives. (You can already feel the trouble breathing down your neck.) ​ He wants “a quick win.” Fast announcements. Faster press releases. And of course a complete redesign of the project. ​ Because why not? ​ The tender? Still running. ​ And they start dropping surprises: ​ A “refreshed scope.” ​ (Translation: 20% more works, zero compensation.) ​ A new corridor alignment. ​ (Translation: throw your existing design in the rubbish bin.) ​ A request for “innovative financing.” ​ (Translation: make magic happen with the same numbers.) ​ And a total silence when bidders ask: ​ “Are you resetting the tender timeline?” ​ Weeks pass. Then months. Nothing. ​ Meanwhile… ​ Contractors freeze teams. Lenders ask for updated models. Equity committees lose interest. (These guys have the attention span of a goldfish when uncertainty hits.) ​ And internally, every bidder starts whispering the same line: ​ “Should we just pull out?” ​ The agency, oblivious, keeps insisting: ​ “We’re building international confidence.” ​ Sure. Just like the Titanic was “unsinkable.” ​ Here’s the real case part: ​ The redesign process added 14 months to the procurement timeline. ​ Fourteen. ​ You could grow a child, launch a startup, or ruin a career in that time. ​ What happened in those 14 months? ​ Material prices skyrocketed Contractors repriced everything Lenders tightened margins FX volatility murdered half the assumptions One of the top-tier bidders walked away for good… to tobacco, as we say in Spain. ​ The final bid price? ​ Up 15–18% compared to the early estimates. ​ Billions evaporated. ​ Gone. ​ And the public narrative? ​ “Global inflation created unexpected challenges.” ​ Of course. Blame the universe. ​ Not the process. Not the indecision. Not the political theatre. ​ The Lesson If you launch a PPP… ​ Finish your homework first. ​ A PPP is not a Lego set you redesign halfway through because a politician had a shower thought. ​ It’s a championship. ​ If you want: ​ Real global players ​ Long-term lenders ​ Predictable pricing ​ Innovation ​ Value for money ​ Then treat bidders like the professionals they are. ​ Provide clarity. Provide stability. Provide speed. ​ Otherwise… ​ The best players retreat. The price climbs. And taxpayers foot the bill for someone’s political improvisation. ​ If you want the real playbook on how to run, or win, one of these things… ​ You're already in the right place. ​ You just need to scroll down and click. ​The Top 100 Q&A You Should Know About PPP​ ​ PD 1: If you liked this email, don't keep it in secret and forward it to a friend. They will thank you enormously one day. PD 2: If somebody has sent you this email and you want to receive emails like this yourself, visit vicentevalencia.com PD 3: If you want unsubscribe, click the link below. ​ ​ |
Vicente Valencia
I talk about Personal Growth, Management, Infrastructure and More | 👇JOIN +2k readers 👇
My wife has sentenced. My little son and I are condemned to not wearing anything white clothes in the next 10 to 15 years. No matter what you do, no matter how much precaution you have, it all ends the same. Wine, oil, or tomato come to the party. And that polo or shirt ended like a Kleenex. One use only. No matter what you do, it’s time you look for a second use or prepare to send it to a charity. One use only, as I said. Like great RFPs. Millions spent. Dozens of consultants mobilized....
Just in a rush as I’m taking a plane. You’ve been reading my emails for weeks. Learning, nodding, agreeing… But nothing changes just by knowing. You can blame the market. You can blame your company. You can blame your boss or the government or the crisis. Or you can accept a fact: Winners move when others freeze. You want better projects? Better money? Recognition? A pat in the back? Then you must become the person who gets those things. You know what I’m offering. Not soft coaching, but...
A client of mine was angry. Very angry. An obstinate and incompetent operator. A client that did not understand what a PPP was or how risks work. Claims. Lots of letters. Even more frustration. It’s hard to work in that environment. But it’s almost the day to day of many projects. People not understanding each other. Not because some are incompetent and have nothing to do but heating and protecting their chairs… that happens sometimes… but because nobody is trying to understand the other...