Glossary

Project Company

The business entity with which an owner enters into an agreement for the delivery of services for a specific project using a public-private partnership (P3). The project company has full responsibility for design, construction, and, typically, operations and...

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Project Implementation Plan

The document developed by the owner as a road map to successful project completion. The document defines the owner's capabilities and its goals, priorities, and drivers for the project, along with its process for selecting a delivery method, procuring a design-builder...

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Proponent

Firm or entity that can perform all of the services requested in a collaborative delivery RFP. The entity may be a single firm, joint venture, or consortium encompassing firms that will perform the specified design, construction, operations and maintenance, equity...

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Risk

The possibility of loss or injury. Effective risk management for a capital project requires recognizing and understanding what could potentially go wrong and then determining which individual or entity is responsible for owning, mitigating, or managing the risk. This...

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Risk Allocation Principles

The rules or guidelines underlying the process of determining which party in an agreement will assume each envisioned risk. In collaborative delivery contracts, risks should be allocated to the party best positioned to manage them. It is critical that all parties...

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Risk/Responsibilities Matrix

A table, created by either the owner or the collaborative delivery firm and agreed to by both parties, that identifies potential project risks and allocates responsibility for each between the owner and the firm, with the objective of reducing the project's...

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Risk Shifting

In allocating risk (e.g., between an owner and a project-delivery firm) holding one party responsible for a specific risk that is not within that party's ability to control.

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