Successful Strategies for Public-Private Partnerships in Construction
Public-private partnerships (PPP or P3) are becoming more and more popular to fund significant development projects. Traditionally, a PPP is commonly used by universities, hospitals, and sporting organizations. Now, they're being seen across the board in housing, essential utilities, agriculture, and environmental conservation.
When done correctly, public-private partnerships can deliver high-quality finished projects on time and budget. To have an effective public-private partnership, be sure to keep these strategies in mind:
Have A Shared Vision
A shared vision is important because it conveys why the project is essential to each party. This will help everyone maintain focus and make sure that the project stays in front of their mind. The vision should include a crystal-clear end goal and the steps it will take to get there.
Enlist an Experienced Development Team
It is important to have developers with lots of experience in public-private partnerships. To have an effective team, it may be necessary to hire specialists in areas like redevelopment, bonds, and the specific municipality.
Focus on Preparation
The correct preparation and planning for the project is crucial to exceed due diligence requirements in every area. It is also of the utmost importance that anyone hired or contracted is appropriately vetted and meets all job requirements.
This type of diligence and planning will help avoid problems and failures that could add extra time and money to the project.
Build a Relationship
One of the very best ways to ensure a successful public-private partnership is by building a solid relationship with your partner that goes well beyond your need for funding for a project. Having a good rapport will also help when problems do arise, and you must work out solutions.
Be Fair and Transparent
Both partners should share equally in the risks and rewards of the project. Fairness and transparency are the cornerstones of making good deals that both sides can feel comfortable with. This may cause the project to be a harder sell to the respective constituents, but it will help later on, as no one will feel blindsided.
Define the Decision-Making Process
For the partnership and the project to run smoothly, there will need to be a clearly defined decision-making process. It is essential to know who makes decisions and how to keep the project moving along at a reasonable pace.
Successful Public-Private Partnerships
Having an effective public-private partnership in construction is an excellent way to ensure large-scale projects are completed. It may be a bit of a process, but these partnerships are a great way to get things done and build a good relationship for the future.
DBe is a full-service General Contracting, Management and Advisory firm. We recommend, implement, and oversee programs customized to the owner’s vision, needs, and expectations. Schedule a consultation for your residential or commercial development project needs with us today!