Have you heard of a P3 agreement? If you are working on a public project, you probably have. If you are considering work on a public project, a P3 or public-private partnership is an arrangement in which a private entity funds a public project. This funding method is gaining popularity as a way for municipalities to meet the need for a better infrastructure. Working with the private sector infuses additional funding that may not be readily accessible via taxes.
In the first part of this series, we provided a couple advantages that are making P3 projects successful (if the project is successful, you chances of prompt payment increase exponentially). Below are a few more reasons. If you have been selected to work on a public project, it’s important that you have an Orlando construction lawyer review the contract before you begin the work. A lawyer can help you understand the nuances of this funding method and ensure that your interests are protected.
- Presents the best practices of the private and public sector: There are specific areas of strength that the public and private sectors possess. You see both in a P3 arrangement. Private entities present technology advances and financial oversight. Public entities understand their processes and procedures for getting public work started and completed. What results is a stronger product than what is seen if the project is completely private or public. This can also create a greater return on investment.
- Public funds can be used elsewhere: When private funds are provided to improve infrastructure, public funds are freed up to be used elsewhere. This may include social programs that can greatly enhance the quality of life for the citizens of a municipality.
City governments everywhere are strapped for cash, however, the taxpayers of these areas have specific wants and needs. By adding private funding for public projects, it not only meets the public need, but it integrates the best that the private sector has to offer (tools and insights), into the community.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.