Sydney Airport Link Tunnel Procurement Process

Introduction to Contracts and Procurement 1
Introduction to Contracts and Procurement
Name
Institution Affiliations
State/City
Date

Introduction to Contracts and Procurement 2
Sydney Airport Link Tunnel procurement Process
During the development of the Sydney Airport link tunnel the procurement process that was
applied is public private partnership (PPP) delivery model. Accordingly, the public private
partnership procurement has been extensively in use in Australia for procuring huge scale
infrastructures as well as public resources like bridges, hospitals and tunnels among other.
Therefore, Sydney airport link tunnel falls under these type of infrastructures (Newman, and
Bird, 2017, p. 71). As a result, the principle of public private partnership project is to realise
value for money for all stakeholders included in the partnership by engaging them in the in a
risk sharing relation.
According to past studies it has shown that private funding as well as operations related to
infrastructure is not a new concept. In this light, the PPP-type structures have been in
existence from as early as in the 17th century in various countries such as France, the United
States and Britain. Certainly, the primary reason for Australia as a country the unavailability
of resources particularly monetary together with the inclining demands for the provision of
infrastructural services, they are a key aspect which has driven Australia to the private sector
to avail the public with goods and services. As a result, this has led to the re-growth of the
public private partnership kind of project procurement approach. According to Jardine, and
Riley, (2017) public private partnership as a cooperative undertaking between the public and
private industry, established on the expertise of every partner excellently achieves the defined
public requirements using appropriate resource allocation, rewards as well as risks.
Therefore, the public private partnership entails two or more actors with at least one coming
from either side that the public and private sector. Accordingly, in this case each member has
the capability to bargain on for themselves and on behalf of the other thus each participant
comes with something of worth to the partnership (MacDonald, 2017, p. 10). As a result,