Public Private Partnerships (P3) have increased in popularity outside of the United States, but many P3 proponents believe the P3 model is also a promising option for America’s construction industry. With the country’s growing need for new and improved infrastructures, P3s may be the answer.
Our Orlando construction attorneys provide comprehensive contract services to many in the construction industry. We believe P3 contractual agreements between public agencies at the state, local, and federal level and private entities require the same attention as any other contract. This two-part article series will serve as a primer to P3s. Read part two of the article to learn more.
What Are P3s?
P3s are contractual agreements between public and private entities that involve teamwork in the area of funding and construction to deliver public building and infrastructure projects. In this partnership, both sectors share risks and rewards. The private entity funds, builds, and maintains the project. The public entity contributes the property, has eminent domain powers and tax-exempt bonds, and imposes user fees.
What’s a Qualifying Project?
Under Florida Statutes 287 Section 05712, a P3 must be identified as a qualifying project which means:
- The project has to be used for public purposes or in support of a public purpose or activity.
- The project must be an improvement to a building that is to be used by a public entity, the public at large, or in support of services on the behalf of the public sector.
- The project must be for a water-related facility or infrastructure.
- Any project the governing board regards as “qualifying” based on Section 05712.
Which Industries Use P3s?
A surface look at P3s will reveal the transportation industry as the most common industry utilizer of this type of partnership. However, the trend for P3s is growing in industries such as water, healthcare, technology, and the construction industry. It’s important to note that not all public projects need to be turned into P3 projects. This type of model works well for larger and more technically complex public projects.
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.