Australian bid cost benchmarking of public private partnerships
Date of this Version
Bid costs are essentially a concern of private companies and evidence is difficult to source from companies keen to safeguard their cost structures in a competitive bid market. Little evidence is available from the product disclosure statements of public companies or published statutory or Securities Exchange returns. Few companies disclose detailed information although there is wide use of generic “rules of thumb” for different project categories and most companies engaged in the PPP market are unwilling to provide information other than in anecdotal form. This paper reviews empirical and pilot survey evidence to ascertain bid cost benchmarks for public private partnership (PPP) projects in Australia. Accordingly, this review seeks to construct approximate bid cost benchmarks from a limited and informal survey of leading building contractors, financial institutions and consultants participating in the PPP bid market, articles published in refereed journals and reports prepared by industry associations, governments and their agencies. The data in this area is commercially sensitive and due to its nature the survey of stakeholders has been limited.