Availability Payment - Payments made by the University over the lifetime of the contract in return for the Developer making the building available. The contract term and payment amount is defined in the Project Agreement.
Asset - The building or infrastructure delivered to the University under a P3 contract.
Builder - The party which is responsible for the construction of the P3 project, as well as for providing all of the material, labor, equipment, and services necessary for the build-out of the project.
Build Own Operate Transfer (BOOT) - A P3 project funding model in which the Developer builds, owns, and operates the building for a set period of time, after which the building ownership is transferred to the University.
Business Case - A document that articulates the reasoning for undertaking the P3 project on the basis of its expected strategic benefits and timeline for implementation.
Proposal Phase - Period of time during which a short-list of Development Teams assemble comprehensive technical, design, and financial proposals in response to the RFP issued by the University.
CM-at-Risk - A conventional project delivery method which entails a commitment by the Construction Manager to deliver the project within a Guaranteed Maximum Price (GMP).
Deferred Maintenance - The practice of postponing building maintenance activities, such as repairs, in order to save costs, meet budget funding levels, or realign available budget monies.
Design-Bid-Build (DBB) - A conventional project delivery method where the Owner contracts separately with an Architect and a Builder. After the construction documents are complete, the Owner solicits bids from Builders to perform the work.
Design-Build (DB) - A project delivery method whereby the Builder designs and constructs the building against a price funded by the University. The Architect is typically under contract to the Builder. Payments for the building are typically made as construction progresses, and the University retains full responsibility for the building when construction is complete.
Design-Build-Finance-Operate (DBFO) - A Public-Private Partnership model whereby the Developer is responsible for designing, building, financing and operating the building for the duration of the contract, which may span 30 to 40 years.
Design-Build-Operate-Maintain (DBOM) - A Public-Private Partnership model whereby the Developer is responsible for designing, building, operating and maintaining the building for the duration of the contract, which may span 30 to 40 years
Design Team - The parties responsible for creating the design and construction drawings of the building. This may include the Builder, Architect, Consultants, and/or Sub-Contractors.
Detailed Project Program (DPP) - A programming document that outlines a project’s minimum functional requirements, including space sizes, contents, quality, scope, activities and relationships.
Developer - The private entity that contracts with the public entity (the University) to undertake some or all of the design, construction, financing, operations and maintenance relating to a project that is to become subject to a financial agreement.
Development Team - The Development Team includes the Developer, Builder, Trade Partners, Architect, Consultants, and in some P3 structures, Operations and Maintenance Service Providers.
Developer Change Proposal (DPC) - A request to the University to approve modifications to the Technical Requirements. The DPC includes a detailed estimate of net cost (positive or negative) and schedule impacts of the requested change. Also known as Technical Requirement Deviation Request (TRDR).
Environmental Impact Report (EIR) - An assessment of all possible effects that a development or construction project may cause on the environment in a particular area. It may include metrics to quantify resulting changes to population, traffic, schools, fire protection, endangered species, archeological artifacts, as well as proposed mitigations that comprise conditions of approval.
Financial Close - The most critical, initial project milestone, which represents the satisfaction of all conditions which in aggregate describe project success metrics outlined as part of the Project Agreement. The date of the Financial Close enables the first drawdown of debt by the Developer.
Governance Board - A University leadership group that is comprised of key P3 project champions across functions, and who share a joint strategic vision for the project.
Life Cycle Cost - The funds or materials required to maintain the building and/or equipment during its expected life-cycle.
Operations and Maintenance (O&M) - All activities, obligations, and responsibilities that allow the building and its systems to be available for use, and/or to perform their intended function.
Performance and Accountability Chart (PAC) - A document that describes the University’s performance measures, results, and accountability processes for the year. Actual results are compared against targets.
Performance-Based - A requirement to design and/or build to a defined standard, code or criteria.
Procurement - The process by which the University obtains services from a Development Team on terms and price considered to be the best available.
Project Agreement - The contract between the University and the Development Team that outlines the provision of assets and delivery of services.
Project Champion - Designated person within the University who understands the P3 process, is in alignment with the long-term strategic vision, and ensures everyone involved is on board and behind the ultimate success of the project.
Project Objectives - What the public entity wants the project to accomplish.
Public-Private Partnership (P3) - A long-term, contractual arrangement between a public entity (University) and a private entity (Development Team) for the design, construction and/or management of a public asset (building), in which the private entity bears significant risk and management responsibility throughout the life of the contract. Remuneration is linked to performance and the availability of the asset.
Request for Proposals (RFP) - A set of documents issued by the University that solicits proposals from the private sector. In a P3 process, the RFP includes the draft Project Agreement and Technical Requirements.
Request for Qualifications (RFQ) - A set of documents issued by the University that constitutes the basis of the qualification and the selection of a short-list of candidates.
Risk Transfer - The risks that are likely to be allocated to the Development Team under a P3 contract.
Technical Advisors - Private-sector, third party professionals retained by the University or Development Team to advise on the financial, legal, and/or technical aspects of the P3 contract.
Technical Requirements (TR’s) - A set of project performance requirements and specifications agreed to between the University and the Development Team
Technical Requirement Deviation Request (TRDR) - See Developer Change Proposal.
Turn-back Condition - Sometimes known as Hand-Back Condition, turn-back is the return of the project to the University at the end of the contract term, which can be as long as 30 to 40 years.