Public-Private Partnerships for Sustainable Development

This assignment examines the role of public-private partnerships (PPPs) in achieving sustainable development within the context of construction projects. It delves into various aspects of PPPs, including their successes and challenges, and analyzes case studies like the Southern Cross Station redevelopment project in Australia. Students are expected to critically evaluate the impact of PPPs on social and environmental sustainability, considering factors such as waste management, energy efficiency, and community engagement. The assignment also encourages exploration of relevant standards and frameworks guiding sustainable development and PPP projects.

Student’s Name:
Institutional Affiliation:

Executive summary
This report tries to critically analyze the procurement process of the Spenser street station
redevelopment. Currently, it has also been said that Southern Cross railway station still needs
redevelopment because of the ever-growing number of passengers the current situation calls for
$300m to cope with this surge in passenger number. The initial redevelopment occurred between
the years 2002 and December 2003 (Gordon, 2016).
The initial capacity of the railway was not enough to hold and transport the current 25 million
passengers per year. This resulted in a cost of $700m for the whole process which was mainly
influenced by the public-private procurement process. Some of the negative implications of the
process include cost overruns and disputed contractual payments.
Therefore, by focusing on the procurement used for the initial redevelopment process, the report
will determine the feasibility of the route, advantages and disadvantages and an alternative route
that would have been the most appropriate.

Table of Contents
Executive summary............................................................................................................................2
Introduction to the Southern Cross station........................................................................................4
Contractors and suppliers...............................................................................................................7
Objectives of the project.................................................................................................................7
Project constraints..........................................................................................................................8
Public-private partnership............................................................................................................10
Characteristics...........................................................................................................................10
Advantages................................................................................................................................11
Disadvantages............................................................................................................................11
Analysis of its use......................................................................................................................12
Application in the Southern Cross railway...................................................................................12
The disputes of the procurement process......................................................................................13
Factors that will affect the procurement process..........................................................................13
Alternative procurement options..................................................................................................14
The traditional method..............................................................................................................14
Design and build procurement..................................................................................................15
Management procurement........................................................................................................16
Construction management........................................................................................................16
Conclusion........................................................................................................................................17
References.........................................................................................................................................18

Introduction to the Southern Cross station
The Southern Cross station was initially known as Spenser Street because of its location. In this,
the location of the railway is in the middle of two streets: La Trobe and Collins (Kramer, 2006).
In this, the middle of the two streets is known as Spenser Street, where the train station is
located. The station is usually busy and is ranked as the third busiest station in Melbourne.
Considering that the station began the operations back in 1859, its redevelopment was something
of concern when it came to the Victorian government. Therefore, when the government unveiled
the revitalizing Victorian rail program which was estimated at about $2bn, the Spenser street
railway was going to be at the forefront when the cash was allocated. The planning meant that
the station was to have two phases of redevelopment. The first phase was undertaken between
the years 2002 and 2006 while the second phase was undertaken between 2009 and 2013
(Victoria, 2012).
The Spenser street station

Aerial view
Initially, the station had a single platform but the need for more platforms became more evident
with the increasing need and demand for the railway transport. This led to the development of 13
platforms in the first phase while the second phase saw two more platforms added to the station.
Currently, the station has 16 platforms (Victoria, 2012).
In the year 2002, some of the major considerations included: provision of an interchange facility
that would ensure that both buses and trains used the station, the provision of a new entrance,
provision of a residential tower, an office tower, increase of the parking space, a shopping
complex at the center of La Trobe and Bourke streets, a new bridge at the passenger side among
others. All these developments were to ensure that the station could handle the increasing
passenger numbers but this is yet to be fulfilled.

One major feature of the Southern Cross station is the architectural design of the roofing system
employed. The station has gone full lengths to ensure that the pattern of the roof is so unique to
the extent that it won the Lubetkin prize among other awards. The design of the roof serves both
aesthetic functions as well as for air ventilation (Hardie, et al., 2012).The air at the station is
filled with toxic diesel fumes and by ensuring that the roof is undulating and trapezoidal in
shape, the fumes are expelled through ducts located on the highest points (Butland, 2002). The
roofing is so tremendous that it spans over an area of about 60000 square meters and can go as
high as 23 meters (Wilson, et al., 2010).
Redeveloped station

Contractors and suppliers
All that stated, the project was conducted through combined efforts of various contractors,
partners, and other agencies. The two main contractors of the redevelopment project are Civic
Nexus and Leighton contractors (Cuthill, 2010). The other companies involved in the contractual
work included Delaware north Australia and ABN Amro among others. On the other hand, the
sound environmental practices of sustainable development (Eskerod & Huemann, 2013) were
mainly conducted by build Ecology and Vision design. The brand is a specialist branch of WSP
Lincolne Scott and provided the sound and environmental designs of the project. Last but not
least is Alfasi Steel construction. The redevelopment consumed a humongous chunk of steel
which was provided by the aforementioned.
Objectives of the project
The redevelopment of the Spenser street station may largely be attributed to the increased
number of passenger. However, other factors may have contributed to this $700m project that
has helped ensure that the travel options in Victoria are numerous. However, the redevelopment
is yet to meet the number of pedestrians expected with a redevelopment plan that will cost the
government $300m more still expected. The growth of the station is so remarkable that it is on s
straight trajectory and if the development plans are successful, it could become one of the busiest
transport hubs in the state, rivaling Melbourne airport (Australian Bureau of Statistics, 2012).
The roofing system was to be designed in such a way that it provided a proper ventilation
mechanism while it still remained attractive and pleasing to the public. This was done by
providing a trapezoidal roof with a wavering facade and a ventilation system at the top (The
leadership in Energy and environmental design, 2007).
Finally, the project was focused on the management and coordination of commuters at the
station. The program focused on the stakeholders as well as the community (Victoria building

authority, 2014). The disruption that would otherwise have been witnessed at this station were
mitigated by these programs and were very effective during the phases of construction as well as
during the unveiling stage. Stakeholder consultation is an important aspect of development
(Aaltonen, 2011)
Project constraints
To begin with, there is the cost constraint. The cost of the redevelopment has to fall within the
amount allocated by the Victorian government. The Victorian government initiated an
infrastructure development program and the allocation was largely based on the potential
profitability of the development. Regardless of this, the amount was to be allocated in a manner
that would see most of the infrastructure invested in.Therefore, the $700m allocation was to be
used in the most effective manner as possible.
Secondly, the time constraint is a factor that needs to be considered during the procurement
process. The redevelopment of the station was mainly driven by the increase in the passenger
numbers. The passenger numbers were on the rise and the station was to ease the pressure on the
capacity. Therefore, there was a time factor that called for the project completion within the
shortest time possible.
The plan area compatibility constraint. In this, the station has led to the development of the
surrounding area by ensuring there is a platform for movement to and from Melbourne. During
the course of the years, the adjacent areas have developed into industrial hubs with residential
development pushed to the eastern part of Melbourne (Building professionals board, 2011).
Some of the outdated station facilities include public space, a roof over platforms, subways etc.
The train station is a vital link between docklands area and the central business district and

therefore should align itself with the current site plans and developments, rather than disrupting
it.
The other constraints mainly pertain to environment and sustainability. Train emissions are
among the most dominant factors of pollution and the associated global warming effects (de
Souza, 2013). The fuel emissions should, therefore, be kept in check by providing sustainable
measures in the design and implementation stages of the redevelopment. A sustainable
development approach can be observed in the roofing system whereby the temperatures, as well
as the emissions, should be kept within the allowed limits.
Design constraints are likely to affect the redevelopment of the station (Artemis Joint
Undertaking, 2012). Proper design is required for such a magnificent location as well as a
landmark station. The station has provided a mechanism through which people and goods can
move to and from Melbourne for a very long time and therefore should have unique design
aspect. Furthermore, the platforms, bridges, and interchanges should all be designed in the
unique fashion with room for expansion in the future because of the likely surge in passenger
numbers.
Another constraint associated with the redevelopment pertains the quality. The redevelopment
has to be aesthetically pleasing, environmental sound and structurally stable. Therefore, the
materials used for the redevelopment have to be of quality standards. Some of the materials to be
used in this case include steel, the roofing systems, concrete, doors and wooden panels etc.
However, this should also be considered in the design stages to avoid misunderstanding because
the materials and the quality used will be associated with the other design aspects such as
environmental sustainability etc.

Public-private partnership
The procurement method is found in the collaborative effort between the public and the private
to ensure that the project is completed within the allocated time. However, it is mainly between
the government and a private entity and has mainly been used for the development of transport,
public health, safety, waste management among others (Kibert, 2016). The main difference is the
financing process employed. It is this procurement process that was used in the redevelopment of
the Spenser street station.
Characteristics
Both the public and private sectors should meet their ends of the deal for the construction process
to be effective. The main difference is with the financing where the private sector is responsible
for the finances while the public sector cross checks to ensure that the financing is adequate.
Furthermore, it is the responsibility of the public sector to ensure that all the technical and
operational aspects are fulfilled. Other responsibilities of the public sector include: proposal
assessments, monitoring the project in order to ensure that the contract is followed to the letter,
paying the work done by the private sector and support to the construction.
The private sector, besides financing, has the following responsibilities: designing of the
different aspects of the project, managing all the facilities used in the operation, bears the risks
that are associated with the project which means that the benefits that can be obtained from the
project in the long term fall in the hands of the private sector. Finally, upon completion of the
project, the private sector passes ownership to the public sector.

Advantages
 The procurement method is very useful when the economies of a country are difficult.
This is because the use of public money is closely monitored.
 There is an aspect of improved innovation in the public sector.
 The quality of the infrastructure is very high because the private sector is monitored.
 There is a reduction in the cost of construction as well as maintenance.
 The relationship between the public and private sectors ensures that public sector gains
from the services offered by the latter such as design.
 The relationship ensures that the weaknesses of the public sector are covered by the
expertise of the private sector.
Disadvantages
 Since the project is mainly controlled by7 the private sector, low income people are at
a disadvantaged position.
 Clauses may be included in the contracts that ensure the private sector makes
humongous profits but the public is not favored.
 The financing aspect of the project is mainly attributed to the private sector which
might lead to a reduction in the cost. The overall effect is the use of inferior materials.
 Loans that may be obtained by the public sector may be cheaper compared to those
obtained by the private sector.
Analysis of its use
The method has been commonly used because of the ability to improve the economy as well as
fill the infrastructure gap (Shwarka & Anigbogu, 2012). Furthermore, because the private sector

is more profit oriented, the government participation ensures that the social as well as the
economic goals are observed.
Application in the Southern Cross railway
The Spenser street station employed a contract whereby Civic Nexus was allowed to redevelop
the station within some stipulated boundaries and upon completion, they were to operate it for 30
years before finally passing the ownership to the state (Cooper, 2017).Furthermore, the
redevelopment also cost Civic Nexus about $66 million which was required for the development
of the surrounding docklands (INB FASO, 2016).
The contract ensured that the station would continue to be operational during the construction
process which in turn meant that the various stakeholders’ rights’ had to be protected (Dempsey,
et al., 2011). The contract indicated that upon the end of 30 year period that Civic Nexus was
going to operate the station, there would be a payment of about $1762 million from the state (PP
partnership, 2008). The cost implications may be \described to be exorbitant but so was the
integration of the plans into the site and the location. In this, the architectural aspects of the
building were to consider the Docklands. By integrating the development of the station into the
development of the city, the structure will be suitably located at the central position.
The disputes of the procurement process
The procurement process that was used for the redevelopment of the station was accompanied
by a number of issues mainly because of the fact that the project was not completed within the
required time among other contractual disputes (Abdulla, et al., 2010). In this, the delay in

development was caused by the government’s 15-month delay (Yescombe, 2011) to come to a
global settlement with the private parties.
The disputes were mainly settled by the state with some settlement including the payment of
money amounting to $8.5.The payment was because of the various claims by developers. The
other losses included providing $20 million benefits that were not in cash form to concessionaire
(Custoz & Reitz, n.d.), and relieving the concessionaire the responsibility of paying for damages
and inability to meet the outlined project milestones.
As can be demonstrated from the above, it is visible that the procurement process used for the
eventual redevelopment resulted to cost overruns which would have been prevented by the
selection of an alternative yet very efficient process.
Factors that will affect the procurement process
The cost of the whole redevelopment process is a major factor when it comes to the procurement
process. Different procurement methods have different associated costs and by reviewing all the
possible routes and the associated costs, the most appropriate route can be determined (Liu &
Wang, 2008). As in the Spenser street station, the allocated cost will determine the methodology
and the process that will be used for the eventual completion of the project.
The time required for the project completion is another important determinant of the
procurement process. Different procurement processes have a disparity in the time required to
complete a certain proportion of work and this plays a major role in the selection process.
Therefore, based on the time allocated and the time available, the procurement officers and client
can easily select a process that allows the project to be completed within the stipulated deadline.

Other constraints and factors of the project. Projects are founded on unique characteristics such
as topography, size, and adjacent lands among others. As with the Spenser street station, the land
is adjacent to the Docklands and provides a vital link with the CBD.However, the adjacent area
is mainly industrial with residential buildings east of the area. This will determine the design
methods employed and therefore the procurement process to be used. Furthermore, the process
will also determine how the various design aspects of the redevelopment will interact.
Alternative procurement options
Basing our arguments on the constraints and factors that are explained below, there a number of
possible procurement routes that may be used in the redevelopment process. However, these
routes have different characteristics and the best route will be based on the integration of all the
necessary requirements of the whole redevelopment. Some of these options are presented below
The traditional method
It is the oldest method in the construction industry (Harris & McCaffer, 2013). In this regard, the
major feature of the process is the separation of the design process and the actual construction
process. By doing so, the method provides a clear understanding of the phases to be used. Some
of the characteristics include competitive tendering in contractor selection, early design measures
to ensure that the tendering and the construction processes are ahead of time, a very long
duration for the eventual completion of the project, room for adjustments, and selection of a
consultant by the client for administration purposes.
Analysis

The traditional method is an effective procurement process but its main disadvantage is a long
time required. One of the major factors to consider in the redevelopment of the Spenser street
station is time and because the method does not meet this criterion, it is not appropriate.
Design and build procurement
The method simplifies the design and construction stages by ensuring that all this work is
undertaken by the contractor (Project management Institute, 2013). In return, the amount is paid
in one lump. However, the contractors are selected based on the design exam set up by a
consultant appointed by the client. The design by each contractor is evaluated alongside the
tender price and all this is evaluated against the client’s preferences.
Some of the characteristics of the procurement process include two-stage tendering process,
concurrent development of the construction and design stages, ability to employ a contract
administrator and payment criteria determined by the contractor.
Analysis
The method is very effective but the main disadvantage falls to the fact that the client is
committed to the process very early. The amount of money spent may not meet the needs or may
be in surplus. The method may not suit the redevelopment because the funds are disbursed after
the design stages.
Management procurement
Is the most dominant form of procurement. The client selects a consultant who details and
designs the structure. Later on, a contractor is selected based on the tendering process.

Furthermore, the construction begins before the actual design process is completed enabling the
construction to progress smoothly and very fast.
Analysis
The method is very effective and may be used in the development of Southern Cross. The
process considers the costs of development, the independence of the contractor as well as the
time required.however,the success of the project depends on the team employed by the
contractor and if the skill set is not meant, the overall work tends to be nbelow standards.
Construction management
The procurement process is similar to the management procurement but the only difference
arises from the fact that the specialist contractors fall directly under the client. However,
management of the whole process is conducted by the construction manager. The method has the
characteristic of employing very skilled labor but tends to be very expensive.
Analysis
The development of unique products is very efficient when using this process. The skilled labor
present ensures that the costs are maintained at an optimal because of the decrease in time used
for the whole process. The method is suitable for the Southern Cross because of the specialist
design and construction required.
Conclusion
Besides the public private partnership, the other method that may be used in the development of
the Southern Cross is construction management. The main advantage of this method is the fact
that the re a number of specialist contractors who are managed by the construction manager.

Therefore, the client can venture into other activities while the manager monitors the
development. Furthermore, precision is highly considered ensuring that all the aspects of the
project are up to standard. This is very important because the redevelopment has to consider the
site requirements as well as the details of the various components of the railway station.
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