If you are a contractor and your are considering putting a bid in on a government project, it’s important that you know about public-private partnerships or P3’s. This model for funding public projects, especially ones involving infrastructure, is a hot button topic in many municipalities across the United States. In a P3 model, a private company or group of companies funds a public construction project. By doing this, the private entity takes on the financial risk of the project in exchange for a financial gain that the project may yield. The public entity provides the land and generally paves the way for the project to take place.
The P3 method has been controversial in that it has seen high profile successes and failures and has been politicized due to the fact it involves public work. If you are a contractor considering a project involving a P3, we advise that your protect your interest by contacting the Orlando construction lawyers at Cotney Construction Law.
The P3 model presents a number of advantages. We’ve listed a couple below:
- Realistic approach to all aspects of construction: When projects are funded privately, there’s oversight involved from a financial and process standpoint. Since the private entity is seeking a return on investment, they will likely put all resources in place to make sure that it is realized. You may see fewer change orders, because cost containment is being actively pursued.
- Private entities bring new methodologies and technologies: Private companies continually pursue new tools and new methods for problem solving that are not always seen in the public sector. This is a great benefit for public projects and, ultimately, makes for a better product for taxpayers.
For more information and P3 advantages, go to part two of this article.