Governments are increasingly turning to public private partnership consulting firms or agencies to implement public infrastructure works in the United States. In this post, we have outlined some of the main benefits of public-private partnerships (P3) for project delivery.

Unclear responsibilities

The lack of clarity about the making of decisions and project governance hinders project delivery. This is when P3 comes in to address the challenge by requiring owners to negotiate and document the risk-allocation mechanism, performance standards, rewards, responsibilities and penalties in a commercially realistic and transparent manner.

No ownership mindset in the delivery team

There is normally poor alignment between the owner and contractor in traditional project delivery. Concessionaires typically adopt the perspective of sponsors, owners or both in P3s because of the obligation to transfer assets in the state of good repair and performance incentives.

Lack of discipline

Public-private partnership consulting firms in CA can help with large infrastructure projects because such projects suffer from time frames, competing objectives and resource commitments. In such cases, P3s achieve operational accountability and clarity of delivery by aligning and defining contractual obligations. They also help with integrating project delivery functions.

Poor project controls

Different systems and multiple participants can result in differing views of the truth, competing versions of progress, a strained relationship among participants and wasted effort on reconciliation. P3 concessionaires can help in deploying considerable resources and project-wide systems to manage, identify and mitigate any deviations from plan and this can result in faster response to changes and contingency planning.

Low initial cost mindset

Procurement approaches that are traditional in nature award projects to the lowest bidder without considering the maintenance and full cycle operation. Public-private partnership consulting firms or companies focus on the long term cost of the project including O&M during the time of awarding the project. This helps to maximize value.