Performance-based infrastructure Trialed in Long Beach, California

02/07/2014

A P3 construction delivery model ensures the court a well-maintained facility over the course of the lease.

The Public/Private Partnership, or P3, construction delivery model presents numerous financial and operational benefits to government agencies that need to build new facilities. The central, and often undervalued, benefit is the maintenance service and built-in life cycle replacement that must be part of any P3 procurement.

Securing the proper funds for facility maintenance is difficult enough in good times. When recession hits and tax revenues drop, finding funds to perform proactive maintenance is virtually impossible. The Design-Build-Finance-Maintain (DBFM) delivery model used in P3 procurements pushes the responsibility for funding and performing maintenance to the private sector. By shifting the maintenance obligation to the developer, the government is relieved of the pervasive negative impact of deferred maintenance.

Deferred Maintenance is the total of systems that do not function or have gone without upgrade or replacement beyond their useful life. Some of the most common examples are computer-based electronic security systems (seven-year life cycle), roofs (20 to 30 years) and heating, ventilation and air conditioning systems (eight to 20 years). Deferred maintenance occurs when agencies cannot fund maintenance efforts properly. Non-working systems in the secure environment of a courthouse pose safety issues to judges, jurors, courthouse staff, and even defendants.

Why maintenance is undervalued is especially puzzling when considering that, over the life a courthouse, maintenance comprises 30 percent to 40 percent of the total cost of building ownership. In other words, while it may cost million to build a courthouse, another million to million needs to be spent over the 30-to-50-year life of the building to make certain it operates correctly and does not interfere with court operations. Depending on the locale, an equal amount may be spent on utilities and energy.

When spending sufficient money on maintenance becomes the responsibility of the developer, state and local agencies do not incur the additional cost of hiring maintenance personnel, procuring parts, or working with specialty contractors. The developer must perform the right amount and type of maintenance, according to the lease terms. The developer must also avoid deferring maintenance.

For mission-critical facilities like criminal justice and correctional facilities, good maintenance programs mean safe, secure buildings and reliable operations. Agencies are guaranteed proper maintenance with the P3 model, providing added value over the entire life of the buildings. By including the cost of maintenance in the lease payment, the developer ensures the right number and type of technical personnel are available in the building to keep the courts operating as intended. By managing and performing day-to-day maintenance operations, the developer protects their investment in the courthouse facility while guaranteeing uninterrupted tenant functions as well as a well-maintained facility to hand over to the agency at the end of the lease term.

Equal attention should be focused on the qualifications of the maintenance provider and the plan for life cycle/maintenance services as is normally focused on the finance, design and build components. The long-term nature of courts and corrections facilities means the maintenance program provides the best opportunity for value in the P3 delivery model.

Joe E. Lee, PE, is with CGL Companies, an affiliate of Hunt Companies, which plans, designs, constructs and manages correctional, criminal justice and government facilities.

 

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