Can PPPs incorporate collaborative contracting? | With Riccardo Cosentino and Jim Bernard | S1 EP 10

In this week’s episode, Riccardo switches chairs and guest host, Jim Barnard, asks all the questions. Riccardo shares insights from his Oxford Saïd Business School dissertation on the use of collaborative contracting into major programmes, specifically PPP structures. Riccardo and Jim delve into the complications and complexities of risk management, adversarial situations, stakeholders and shareholders and private financing.

“When you have collaborative contracting, you almost waive your legal rights or your rights to pursue legal remedies. And so, all of the parties are around the table. There are many advantages of collaborative contracting, but the simplest one is, instead of hiring lawyers to sort out disputes, you’re redeploying those resources to actually solving project problems.”

Key Takeaways:

• The price of winning contracts in the PPP market and how the public sector entity comes into play
• Why collaborative contracting provides better odds for finishing on time and on budget, but equity has to take more risk
• PPP and politics, how do we navigate it?

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

• Riccardo Cosentino on LinkedIn
• Jim Bernard on LinkedIn

Transcript:

Riccardo Cosentino 00:05

You're listening to navigate the major problems, the podcast that aims to elevate the conversations

happening in the infrastructure industry and inspire you to have a more efficient approach within it. I'm

your host, Riccardo Cosentino brings over 20 years of major product management experience. Most

recently, I graduated from Oxford University Said business school, which shook my belief when it

comes to navigating major problems. Now, it's time to shake yours. Join me in each episode, as I press

the industry experts about the complexity of major program management, emerging digital trends and

the critical leadership required to approach these multibillion-dollar projects. Let's see what the

conversation takes us. Hello, and welcome to a new episode of navigating major programs. Today

we're going to be doing things a little bit differently. My friend, and one point guest of the show as

agreed kindly to be hosting this podcast. And we'll do a role reversal where I'm going to be doing the

presenting and Jim Barnard is going to co-host the show. And today we're going to talk about a topic

that is very close to my heart, which is the use of collaborative contracting into major programs,

especially into PPP structures. I've done a full dissertation at Oxford as part of my master, major

program management, and I decided that it'd be good to walk you through my findings and my

conclusion. Anyway, let me introduce the host for today. Jim Bernard. How you doing? Jim?

Jim 02:00

I'm great. Riccardo, thanks for having me. Big fan of the podcast, obviously had the chance to be on a

previously so very much appreciate the opportunity to be host this time.

Riccardo Cosentino 02:11

So today, as I said, I'll be a be doing the talking. And you'll be doing the asking. Maybe I can start? I'll

jump right into it unless you have a specific question for me. And maybe I can give a bit of a bit of an

overview of my research thesis and some of my findings and some of my conclusions.

Jim 02:34

2

Transcribed by https://otter.ai

Yes, summary will be great, a perfect place to start. But some of our folks listening may not be

completely familiar with even the concept of collaboration. And I know having read your dissertation

that you get into some fairly technical and detailed topics relative to finance and how structures are set

up and that type of thing. So for those of us either less familiar or kind of new to the topic, if you don't

mind, let's start as basic as possible.

Riccardo Cosentino 03:03

Okay, well, let's start with, let's start with what prompted me to research this specific topic, the probably

a good place to start here. I you know, I'm a professional the work in public private partnership over the

last 20 years. So again, a lot of knowledge about the topic, I have structured and finance many

transactions that use non recourse financing. And a couple of years ago, my company decided to exit

the what we call the lump sum turn...