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An infrastructure record (claim) in History
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Toronto. 2015. Project: Eglinton Crosstown LRT. Value: CAD $5+ billion. Model: DBFM. Jurisdiction: Canada — the global gold standard of PPPs. ​ The agency wanted efficiency. Faster procurement. Faster close. Cleaner risk transfer. Put a medal in the chest for opening the day before election day. ​ So they did what PPP manuals love to say: ​ “Allocate risk to the party best able to manage it.” ​ That sentence has probably financed more claims for lawyers than any other in infrastructure history. ​ Tunnelling risk? Transferred. Utility coordination? Transferred. Schedule risk? Transferred. ​ Because, of course, the private sector “manages risk better.” ​ And please, sign now that we don’t arrive to election day… ​ Then construction started. ​ Unexpected ground conditions. Utility delays. Interface chaos. ​ Opening planned for 2020. Not opened. Pushed again. And again. ​ Claims followed. Disputes followed. Headlines followed. ​ And suddenly the “perfect Canadian PPP model” was negotiating with geology. ​ The Lesson PPP doesn’t eliminate risk. It relocates it. ​ And if you relocate it too aggressively, it comes back with lawyers. ​ So do it well… ​ Even in Canada. ​ For more lessons, you can click below. ​Life is easier with an Ex-CEO on your ear. ​ ​ 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 👇
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