Public–private partnerships (P3s) have long been used as a tool for delivering complex infrastructure projects in Canada, but the landscape is changing. In this episode, Riccardo and his panel of experts explore how P3s have evolved and what that means for today’s projects, funding models, and risk-sharing dynamics.

In this two-part series, Emily Moore (University of Toronto), Pouya Zangeneh (University of Calgary), and Rob Pattison (Rob Pattison Consulting) bring industry, academic, and legal perspectives to the conversation. Together, they unpack how shifting risk appetites, funding structures, and partner roles are reshaping both the potential and the challenges of using P3s.

From the financial nuances of availability versus revenue deals to the often-overlooked behavioural impacts of changing equity stakes, this discussion offers timely insights for anyone curious about what makes these partnerships succeed or fail.

Key Takeaways

• How project decisions, such as the approach to liquidated damages, change based on whether a project is privately or publicly funded.
• The various dynamics and incentives in revenue deals and availability deals.
• How equity plays into the outcomes of P3 projects, both beneficially and detrimentally.
• How misaligned motivations, externally or internally, can complicate or even derail a project.
• The history and practice of honourariums and bid fees during project bidding.

Quote

“Any ​contractor ​that ​they're ​going ​to ​hire ​is completely ​independent. ​They're ​a ​third ​party. ​And ​so ​if ​to ​protect ​your ​equity ​as ​the ​owner ​and ​if ​to ​protect ​the ​business, ​you've ​got ​to ​bankrupt ​your ​contractor, ​well, ​you ​know, ​you ​won't ​have ​qualms ​about ​that. ​I ​mean, ​other ​than ​as ​a ​sort ​of ​human ​being ​walking ​around ​on ​this ​planet. ​But ​from ​a ​financial ​perspective, ​you ​won't ​have ​any ​qualms ​about ​that ​because ​your ​only ​relationship ​is ​that ​contract ​and ​you've ​got ​securities ​and ​you've ​got ​this ​and ​that ​and ​you've ​got ​the ​other ​thing. ​And ​the ​interesting ​thing ​in ​a ​P3 ​is ​if ​everybody ​in ​that ​family ​has ​their ​own ​P ​and ​L ​and ​if ​they ​take ​it ​to ​the ​logical ​extension, ​and ​Ricardo, ​you'll ​correct ​me, ​but ​if ​you're ​a ​public ​company, every ​officer ​of ​that ​company ​who's ​got ​a ​P ​and ​L ​has ​a ​fiduciary ​duty ​to ​deliver ​for ​the ​public ​company. ​And ​well, ​my ​responsibility ​is ​my ​P ​and ​L. ​And ​if ​protecting ​my ​P ​and ​L ​means ​bankrupting ​another ​division, ​actually ​that's ​what ​I ​got ​to ​do ​unless ​the ​board ​wants ​to ​overrule ​me.” - Rob Pattison

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Music: "A New Tomorrow" by Chordial Music. Licensed through PremiumBeat.

Welcome to Uncharted Conversations, a new Navigating Major Programmes series designed to disrupt industry thinking one unscripted conversation at a time. In each episode, the panelists bring their diverse perspectives to the table as self-dubbed industry pirates, adopting a mercenary approach to calling out industry challenges. Up first: collaborative contracts.

David Ho is the National Leader of Healthcare and Buildings for Accenture. Melissa Di Marco is a Partner and specialist in Project Advisory and Disputes at Accuracy. Shormila Chatterjee is the Vice President of EY. Together, these experienced programme professionals discuss the complexities of collaborative contracting in the infrastructure sector, including often-seen core competency shortcomings and the importance of empowering the right decision makers.

Too often, collaboration is misconstrued as the project goal when it is, in fact, merely one possible vehicle. This conversation delves into market participation, trust issues and risk allocation, and why technical skill shouldn’t top the recruitment checklist. Decision-making, competency, and governance are painstakingly dissected in this no-holds-barred discussion that highlights the problems not with collaborative contracts themselves but with the assumption that choosing this model will fix all the problems. Join these leaders as they explore why the infrastructure industry might be ready for a seismic systemic shift.

Takeaways:

• Why every organization’s first question should be whether they have the skills to manage a collaborative contract.
• The dangers of assuming a collaborative contract will automatically be easier and mitigate risk.
• The need for a strong collection of capable people around the table for any programme model to succeed.
• How systems and governance can be structured with empowerment in mind.
• The soft skills that are essential, and more important than technical experience, for true collaboration.

Quote:

“The idea ​will ​be ​to enter ​into ​a ​process ​with ​a ​winning ​counterparty. ​We ​can ​call ​them ​whatever ​we ​want, ​development ​partner, ​whatever ​it ​might ​be. But ​that ​period ​of ​dialogue ​and ​iteration,​ ​if ​it ​is ​prescribed ​by ​an ​even ​more ​detailed ​rulebook, in ​my ​mind, ​it ​doesn't ​matter ​if ​the ​end ​of ​that ​rulebook ​still ​doesn't ​have ​a ​fixed ​price. ​All ​you're ​doing ​is ​layering ​on ​a ​set ​of ​rules ​that ​is ​now ​a ​wholly ​dependent ​upon ​the ​behavioural ​interpretations ​of ​the ​people ​playing ​the ​game. ​And ​if ​the ​behavioural ​interpretation ​is, ​I'm ​going ​to ​use ​the ​rules ​to ​my ​advantage ​to ​exploit ​your ​bad ​writing ​of ​the ​rules, ​or ​I'm ​going ​to ​use ​the ​rules ​to ​my ​advantage ​to ​compel ​you ​to ​obey ​no ​matter ​what. ​Then ​forget ​it. ​It's ​not ​collaborative. ​It ​is ​just ​a ​more ​involved ​rule ​book ​​for ​less ​certainty ​of ​outcome.” - David Ho

The conversation doesn’t stop here—connect and converse with our community via LinkedIn:

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Music: "A New Tomorrow" by Chordial Music. Licensed through PremiumBeat.

How is urban art developed in cooperation with planners, developers, and architects? Public art is designed to be viewed and enjoyed from many angles. Riccardo embraces this 360-degree perspective in this episode by examining a component of major programmes that is not often explored: the development of the impressive art installations on display in many public buildings. He speaks with Corail Bourrelier Fabiani, a former host of the podcast and the passionate programme manager behind London’s Shard and Paddington Square sculptures.

Corail outlines the intricate relationship between public art and major urban developments in the city, from why it’s so important to inspire ongoing wonder in our concrete jungles to the challenges of getting involved late in the development process. Her experiences highlight the importance of stakeholder collaboration and the many moving parts that must be navigated to create something beautiful, lasting, and welcoming for tourists and residents alike—something that helps define the fabric of the city around us.

Takeaways:

• The humanizing impact of interacting with public art.
• The complex process of stakeholder management and artistic team selection.
• The benefits of enthusiastic architect and engineer buy-in on an art installation.
• The technical, structural, and visual challenges inherent in making public art decisions at the end of development.

Quote: “There ​are ​a ​lot ​of ​sculptures ​around ​us ​that ​we, ​after ​a ​while, ​we ​don't ​even ​see. ​And ​I ​would ​say, ​like, ​it's ​true. ​It's ​true ​with ​a ​lot ​of ​the ​urban ​fabric ​that ​when ​you ​get ​used ​to ​something, ​you ​just ​stop ​like ​looking ​at ​it. ​If ​you ​take ​the ​tube ​in ​Paris, ​for ​example, ​like ​the ​very ​old ​entrances ​to ​the ​tube ​with ​like ​the ​lights ​and ​the ​way ​they're ​shaped, ​etc. ​This ​kind ​of ​Art ​Deco, ​like, ​beautiful ​entrance. ​Most ​people ​don't ​even see ​them ​anymore, ​you ​know. ​Or ​if ​you ​walk ​along ​alongside ​the ​Thames ​and ​you ​go closer ​to ​the ​Tate, ​you ​would ​see ​these ​lampposts ​that ​have ​big ​fish ​at ​the ​bottom ​of ​them ​that ​are, ​you ​know, ​around ​the ​lamppost. ​And ​a ​lot ​of ​people, ​because ​we're ​so. ​There ​are ​so ​many ​images, ​etc, ​or ​we're ​too ​much ​into ​our ​own ​world, ​like ​thinking ​about ​our ​issues, ​our, ​like ​our ​next ​meeting, ​et ​cetera, ​we ​just ​walk ​past ​them ​without ​even ​noticing ​what's ​around ​us. ​And ​I ​think ​art, ​​the ​magic ​of ​art ​is ​that ​sometimes ​it ​grabs ​your ​attention, ​you ​don't ​know ​why, ​and ​it ​makes ​you ​stop ​for ​a ​second ​and ​realize ​that ​your ​surroundings, ​or ​be ​completely ​amazed ​that ​you ​notice ​that ​element.” - Corail Bourrelier Fabiani

The conversation doesn’t stop here—connect and converse with our community via LinkedIn:

• Follow Navigating Major Programmes
• Follow Riccardo Cosentino
• Read Riccardo’s latest at www.riccardocosentino.com
• Follow Corail Bourrelier Fabiani

Music: "A New Tomorrow" by Chordial Music. Licensed through PremiumBeat.