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Asset Management of Dutch Real Estate investors

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  • Economics
  • Law


Microsoft Word - 20110401_Paper_ERES-PhD-Session.doc Efficiency analysis of Public Private Partnership Public Private Partnership (PPP) projects offer realisation and life cycle services for real estate by a fixed charge. By procurement of real estate as PPP the bids are complex due to real estate specifics, different kinds of offered services (planning, construction and facility management), output specifying tenders and long term contracts based on assumptions of future developments. Nevertheless awarding of PPP contracts has to follow public procurement rules. Awarding of contract has to be transparent, the bidders have to be treated equally and the most efficient tender has to be accepted. Therefore the most efficient bid has to be recognized to ensure an economical efficient application of tax money corresponding to public procurement rules. Up to now there are several uncertainties for the determination of economical efficiency of PPP bids. As a result there are caveats against contract awarding in several public real estate projects. A solution for an equal and transparent treating of all bidders through a newly developed method is presented below. The method enables the equal and transparent determination of the efficiency of PPP bids. The public client and the bidding companies achieve legal certainty and avoid future caveat by usage of the method and the defined terms. 1 Purpose The difficulties to find out which PPP bid offers the best economical efficiency start by the definition of the term: “efficiency”. For public procurement efficiency is defined as benefit-cost-ratio [Krems 2010], see section 2: “Public procurement”. By usage of that definition, benefit and cost of PPP bids have to be evaluated resp. calculated. For the benefit evaluation criteria have to be developed. These criteria have to be weighted, because of differences in importance of the single criteria. Both, development and weighting of

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