Case Study: Denver FasTracks Eagle P3 Project – Public-Private Partnership Delivery Challenges (2011)

Project Overview
• Name: FasTracks Eagle P3 Commuter Rail
• Location: Denver, Colorado
• Year: 2011 (construction phase)
• Project Size: $2 billion
• Scope: Design, build, finance, operate, and maintain commuter rail system under a Public-Private Partnership (P3) delivery model
• Lead Agencies/Contractors: Regional Transportation District (RTD), Private Consortium

Category of the Issue, Problem, or Challenge
• Project Delivery Method
• Public-Private Partnership (P3)

Summary of the Issue, Problem, or Challenge
During construction, misalignment between public agency requirements and private partner delivery priorities led to scope disputes, schedule delays, and renegotiations of contract terms. Challenges in balancing performance incentives with risk sharing caused friction and slowed progress.

Root Cause Analysis

• Inadequate upfront alignment on performance standards and scope.
• Differing priorities between public agency’s public service goals and private partner’s financial objectives.
• Ambiguous contract terms around scope changes and risk sharing.
• Limited experience with P3 delivery model at agency and contractor levels.

Impacts Due to the Issue, Problem, or Challenge
• Schedule delays of 6 months impacting overall system rollout.
• Increased costs due to renegotiations and claims.
• Strained relationships between public agency and private partner.

Corrective Actions Taken

1. Developed clearer, more detailed contract provisions for scope and risk management.
2. Enhanced collaborative governance structures including joint decision-making committees.
3. Provided training and education on P3 delivery roles and responsibilities.
4. Instituted periodic performance reviews and conflict resolution processes.

Lessons Learned

• Clear and detailed contracts are critical in complex P3 projects.
• Aligning public and private partner priorities is essential for smooth delivery.
• Collaborative governance improves trust and project performance.
• Experience and training on delivery method specifics reduce risks.

Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation

• Are contract terms detailed and clear on scope and risk?
• Is there a governance structure that fosters collaboration?
• Are public and private partner goals aligned and managed?
• Does the project team have adequate P3 delivery expertise?