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CCCA_V3No1_P3-FIN.qxd:CCCA_V1No1_DriversSeat-FIN.qxd 1/21/09 2:55 PM Page 24 Cover In Mellin’s case, outside counsel — both that retained by understand what the Canadian Construction Documents HHSC and that provided by IO — provided the “hub” function. Committee (CCDC) agreements were. I spoke at length to our Similarly, as in-house counsel with diverse responsibilities within then-director of capital development and our insurer on insurance the organization, Chen-Kuo relied on external counsel to help requirements for different projects, consultants, and architects, and keep her informed — and keep TransLink’s approach consistent who’s typically responsible for them.” — in key areas such as property acquisitions,indemnities,and con- Finally, she advises:“Ask questions. Surprisingly enough to me, flicts of interest. I did add value. I asked questions nobody had asked before.” “The project team is consumed with implementing the proj- “When I was recruited here, I couldn’t quite understand why ect, but I had to focus on project developments that would have Carillion was interested in me, because I perceived Carillion as a implications for the rest ofTransLink’s operations,without getting construction and development company and I had no construction bogged down in details,” Chen-Kuo says. law experience,” says Rosenberg.“But they told me that they were “Although I wasn’t involved in direct negotiations with the interested in me precisely because I wasn’t a construction lawyer — proponents, I was able to stay connected by sitting on the internal it was the fact that I was a transactional lawyer,because I had worked GEB Project Steering Committee and the Relationship Review on so many types of transactions, seen so many types of deals. Committee — which examines potential conflict of interest situ- “P3 is so many things rolled into one: development, equity, ations — and having regular conversations with GEB external investment, construction, real estate, operation, financing.When counsel, with whom I had an established working relationship. you bundle all together, it throws up a unique set of issues.” Otherwise, as general counsel, it would be hard to stay current.” As Mellin and Rosenberg discovered, there is almost always room for solid and varied legal skills on a P3 deal. Real estate Keys to P3 success expertise — including geotechnical and environmental issues — Lawyers on both sides of the table stress the importance of respect- environmental law, construction law, corporate and commercial, ing and relying upon the others’ expertise. Although Pattison contract, and municipal land use will all come in handy. strongly encourages in-house counsel to make use of the legal So will experience with aboriginal law:“Any project involving counsel appointed by IO for each project, he also notes that significant real estate will likely give rise to First Nations issues,” “in-house counsel understands what’s unique about his or her notes Chen-Kuo, who also points out that experience in dealing particular facility, community or organization.” with legislative amendments would be an asset: “We needed a “The quality and expertise of your team members, your advi- page and a half of additional legislation to deal with tolling pow- sors, of your other consortium members, does matter,” says Bain. ers on the Golden Ears Bridge.” Negotiation skills on P3 projects “What I’m hearing clients say is the cost of a good team isn’t sig- are crucial, as is the ability to work collaboratively with the mul- nificantly different than the cost of a not-so-good one. But the titudes of people and parties that make up these deals. probability of winning goes up if you keep your quality up.” In short, in the increasingly visible and incredibly interesting “Defer to the people who have the expertise — often external field of P3s, in-house counsel would do well to find their niche counsel,” says Mellin. “Ensure that you have the appropriate sup- and figure out how they can bring most value to their organiza- port.” Of course,she notes,that doesn’t preclude educating yourself. tions and the deal team.“You need to be as imaginative and inno- “Review relevant legislation,case law and publications.Contact vative as the projects themselves,” says Jodoin. experienced external counsel to guide you to and/or through these if necessary. I had to read the Construction Lien Act and Susan Goldberg is a freelance writer based inThunder Bay, Ontario. e penser ces conseils et ces informations dans précise M Mellin. Elle conseille également Rosenberg, l’expertise légale en PPP doit une perspective de marché », avance-t-elle. de poser des questions et s’intéresser à être variée : l’immobilier, les lois environ- l’ensemble du processus. nementales, les lois de construction, les Les clefs du succès « Un PPP,c’est un véritable amalgame de contrats commerciaux et corporatifs, les Réussir un projet en PPP est une tâche plusieurs choses: développement, équité, règlements municipaux seront tous à colossale pour un conseiller à l’interne. Il investissements, construction, immobilier, examiner en cours de processus. faut tout d’abord bien se renseigner et bien finance.Cet amalgame nouveau fait émerg- Selon Michel Jodoin, les PPP exigent s’entourer.« Il vous faut lire les texte de loi, er toutes sortes de questions jamais posées de l’imagination et de l’innovation de la les jugements et les publications.Vous devez auparavant », renchérit David Rosenberg, part des conseillers internes s’ils ne veulent contacter des conseillers externes expéri- vice-président senior aux affaires légales pas manquer le bateau.« En fait,il leur faut mentés. Il est primordial d’être en contact chez Carillon Canada Inc. être aussi imaginatifs et innovateurs que les étroit avec tous les partis impliqués », Comme le soulignent M es Mellin et projets eux-mêmes », lance l’avocat. 24 CCCA Canadian Corporate Counsel Association SPRING 2009