Public-Private Partnerships (PPP) is an umbrella term covering various types of collaboration between the public and private sectors, where the public sector plays a key role as a purchaser of services.
PPP construction work and investing is important for many construction corporate organizations. For some, a PPP strategy — such as developing then selling investment stakes and retaining long-term maintenance contracts — is central to their business model. Industry players at all levels can be involved, from the biggest companies heading consortia to small, local sub-contractors.
While PPP projects are a very important source of construction and investment income for many of the largest constructors, they can also be risky. For example, financial pressures can often arise as there is often a time-lag between bidding for a PPP project and receiving earnings. Project over-runs are also common and can present a significant risk.
