Massachusetts Public Infrastructure Opportunities -- A Good Bet in a Down Economy
I recently received an invitation to a tele-seminar on public infrastructure issues for attorneys, ABA 2007 Model Code For Public Infrastructure Development. With a focus on green development and neglected infrastructure improvements colliding, this should be a growth area for small businesses (and lawyers) that learn how to participate in these projects. It's also an area MA municipal governments and agencies must keep informed of to protect their interests.
For instance, the seminar material states:
Public infrastructure is a hot topic for public clients, construction industry firms, financial service firms, and their counsel. There is tremendous need for schools, new public buildings, water projects, sewer projects, bridges, roads, highways, energy conservation projects – and public resources are scarce. In addition, the way in which design, construction, operations, and financing can be structured to meet these needs is becoming increasingly important, and controversial.
As I look around Weymouth, I can’t argue anything to the contrary. Route 18 work is ongoing and its widening is down the road. Southfield is advancing the redevelopment of the old South Weymouth Naval Air Station under its expanded municipal powers. The financing arrangment on the East-West Parkway demonstrates how new initiaives are being backed with new vehicles. Ground has been broken on a new town owned water treatment facility (over $50 million). The high school addition is complete and our water and sewer infrastructure improvements have been significant. I recently saw information on two projects requiring over $5 million in needed school repair work. In Weymouth, projects such as Legion Field, Tufts Library, Fogg Library, improvements to the squares or villages, and the Fore River Bridge are just some of the many areas where significant public resources will be invested and present opportunities to qualifying businesses. In our last budget, there was even $500,000 for painting a water tower. The amounts involved are not insignificant.
While public projects can have their challenges and delays, it remains a growth area for developers and other professionals to consider in a down economy. After all, bridges must be built and someone needs to build them.
On the municipal side, what are the questions government leaders should be asking and how are liabilities being assessed? The seminar material's ask a few important questions:
- Is the infrastructure budget enough? Look again.
- Are recommendations being made for “Public Private Partnerships”? Are public officials listening?
- Are Design-Build and other innovative infrastructure procurement methods authorized in your jurisdiction? Are you sure?
- Are contracts for infrastructure services being awarded based on transparency and head-to-head competition? Are you sure?
- Is there public confidence that government officials are getting best value for money? Is this clear?
- How can you clarify legal authority for innovative procurement methods and also find help to manage novel, risk-allocation issues in contracts with very long performance times and huge financial consequences?
