The recent economic slowdown has resulted in a tightening of purse strings for major public construction projects across North America. At the same time, governments at all levels face challenges related to building and maintaining public infrastructure. Public-Private Partnerships (P3s) allow governments to push ahead with vital major construction projects while creating jobs.
Bridgeport Hospital Redevelopment
“The P3 delivery method just makes sense,” said Brad Nelson, president and COO of PCL’s Canadian Buildings Operations. “It has brought discipline to the public sector to have projects completed at competitive pricing values, within strict budgets and timeframes, and at the same time utilizes the contractor’s ability to provide innovative methods to produce a high-quality end product.”
WHAT IS A P3?
A P3 is a type of contract that allows a government to share the responsibility for financing, designing, building, and/or maintaining a construction project with private sector companies best suited to manage them. In most cases, the contractor hired to build the project manages the construction risks, while other private sector partners absorb financial and operational risks. In other words, the P3 consortium becomes a long-term partner to the government with a shared interest in the success of the project. After the contract term (usually 40 years), the asset is handed back to the government.
WHAT ARE THE BENEFITS OF A P3?
By entering into a P3 arrangement with a consortium of private sector companies, government entities are able to transfer much of the risk and responsibility of major infrastructure projects.
“I will go into projects with PCL knowing that I will be dealing with a resourceful group of people who will help me resolve issues that neither of us can foresee,” said John McKendrick, senior vice president, Project Delivery, Infrastructure Ontario.
WHAT CAN PCL DO FOR YOU?
PCL is recognized as one of the most experienced P3 contractors in the world, having built over twenty P3 projects across North America dating back to 1999. The organization was recently honored with four national awards for innovation and excellence from the Canadian Council of Public Private Partnerships (CCPPP). Partnering with PCL allows government clients to achieve cost and schedule certainty. PCL continues to work with governments at all levels to explore new ways to finance and build infrastructure projects.