Publications for Public-Private Partnerships
In the recent decade, governments have begun to utilize a public-private partnership (P3) which by its definition usually requires a design-build methodology of delivery. The design-build concept places the designer and contractor on one team in answer to the government’s request.
Design-build methodology minimizes change orders and cost overruns. When the design-build methodology is coupled with the private sector’s obligation to finance, operate, and maintain the structure, the issues of risk related to best-value procurement and optimum building durability are obtained. When design-build is coupled with private sector obligation to finance, operate, and maintain the project, it is usually described as a public private partnership (P3).
Municipalities should note a new law just passed that might provide for a workable, creative option to help get funding for public projects.
Operating a construction company in Michigan’s current business and economic climate is challenging enough without the additional burden of dealing with contractors who fail to pay subcontractors and materialmen promptly...