Understanding PPP Tendering Periods in Canada: A Duration Analysis

Public-private partnerships (PPPs) often require lengthy tendering periods that can deter bidders, reduce competition for contracts, and undermine the overall social benefits of PPP procurement. PPP tendering periods in Canada are notably shorter than in other countries with mature PPP markets such as those of the United Kingdom and Ireland. We explore Canadian PPP procurement by using data on 160 PPP projects. By using duration analysis, we find that higher PPP contract values and greater risk transfer are associated with longer tendering periods. In addition, we find significant variation in tendering periods across sectors. We support our analysis with a review of the extant literature on Canadian PPPs and interviews with PPP professionals. This identified other important factors such as securing necessary approvals before commencing procurement, creating specialized PPP procurement agencies, contract standardization, lower information and design requirements, avoidance of additional bid stages, and the use of substantial completion payments.