Implication of Public-Private Partnerships in Construction

Public-Private Partnerships (P3 or PPPs) have been utilized and studied more frequently over the past couple of decades for both infrastructure projects and building development projects. Based upon the records of the outcomes of these projects there is a plethora of data that demonstrates the benefits and challenges that this delivery method poses. As the name suggests, these partnerships allow for public goals to become realized while also providing opportunities for the private sector to gain business success. These two often divergent interests are finding mutual benefit but the process of compromises also comes with some disadvantages that should be understood in order to make decision of whether the risk/reward equation works for all stakeholders. In particular, this paper will focus on how PPPs affect the construction aspects of projects and will assert how to understand the risks and evaluate the benefits from a construction perspective.