More public-private partnerships (P3s) will mean greater opportunities for US engineering and construction firms. Now is the time for US E&C firms get into this competitive game, but it’s worth learning the ropes before trying to take a leading role. Before deciding to try a P3, construction firms must determine their risk tolerance and carefully evaluate the risks and rewards of specific projects.
Public-private partnerships (P3s) are becoming more popular because they can produce a variety of benefits, including greater operational efficiencies gained from capitalizing on the private sector’s know-how and more appropriate allocation of risks to the parties best able to manage them. For the private-sector participants, P3s offer potentially greater financial rewards than the typical construction project, as well as greater control and flexibility.