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Stop Overthinking PPP Evaluations — Do This Instead
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Most PPP evaluations are designed by committees obsessed with checking boxes. Not with selecting the best partner. The result? Overcomplicated scoring matrices Subjective criteria disguised as science Endless “clarification” rounds A perfect environment for disputes… Sorry. A PPP evaluation is not an academic exercise. It’s a decision. And decisions must be fast, clear, defensible. So… how do you design the perfect evaluation? The 3-Step PPP Evaluation That Actually Works Step 1 — Choose only the best consortia Not everyone deserves a seat at the final table. Prequalify serious, experienced teams. Full stop. Step 2 — Pass/Fail the technical minimums Define what the asset must achieve over 30 years: Availability? Safety? Lifecycle performance? KPIs? If they meet the standard → pass. If not → bye bye. Simple. Fair. No discussions. Step 3 — Award to the best price and risk allocation But not just “lowest tear-down number.” Price + lifecycle + risk transfer = real cost That’s what matters. Why this works Speed → Less engineering theater, faster decisions Clarity → No “interpretation” battles Competition → Strong bidders stay to the end Value for money → Focus on outcomes, not paperwork And yes… this model terrifies the “consulting industrial complex” that needs 400-page reports to survive. Let them be terrified. PPP Rule: If you can’t explain the evaluation in one slide… it’s designed to fail. More on tomorrow. In the meantime: ​Vicente Valencia Academy ​ 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 👇
Still in the UK. Now, a hospital PPP. Large. Modern. Shiny. Hundreds of millions invested. Years of planning. Procurement. Financial close. Construction. Finally… The building was delivered. Or so everyone thought. The project was the Royal Liverpool University Hospital PFI project. New hospital. Supposed to open in 2017. There was only one small problem. The building could not be used. Fire safety defects. Structural issues. Incomplete works. Entire sections of the hospital had to be torn...
Everyone relaxes after the contract is signed. Lawyers celebrate. Sponsors shake hands. The press release goes out. “Landmark infrastructure project.” “World-class partnership.” “Long-term value for taxpayers.” Champagne. Photos. LinkedIn posts. Etc. In 2018 one of the largest PPP contractors in the UK, Carillion, collapsed overnight. Not struggling. Not restructuring. Collapsed. Gone. A tomar por cul0. The company was involved in dozens of PPP projects across the UK and beyond. Hospitals....
I hope you had not been in one of those… A meeting with a Power Point. Around 130 slides… Yes. One. Hundred. Thirty. Graphs. Tables. Appendices explaining the appendices. The speaker? Monotone. Boring. Like a GPS giving directions in the desert. A funeral seemed a fiesta in Ibiza. Slide 14… Slide 38… Slide 79… Around slide 92 something magical happened. One of the client directors fell asleep. Not metaphorically. Actually asleep. Head tilted. Eyes closed. The kind of sleep that says: “I’ve...