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The Growing Advantages of Public-Private Partnerships - Pain Points to Note

The Growing Advantages of Public-Private Partnerships - Pain Points to Note


Public-Private Partnerships have been a cult change of business models these days, especially in nations such as the United States of America, who has been adapting the technique for various public-based infrastructure construction and maintenance. The results when operated correctly has successful as the overall implementation, and project delivery is fast and efficient.

The USA, for its part, has shockingly seen itself placed behind nations like the UK, Singapore, and Germany in terms of overall infrastructure development. With the aging infrastructure within the USA the cumulative need is estimated to touch 3.5 trillion USD by 2020. This is where the PPP model comes in to play and helps to curtail the financial gaps for the solution. A recent study conducted by Syracuse University predicts the budget would shoot up immensely for the public sector without P3 coming to the rescue.

Pain Points of the P3 Model

The Public sector for its part faces 8 main hurdles that stall the efficiency overall. PPP has a solution for these issues.

·       Weak Strategy and Alignment Issues: This is one condition where the planning is weak and may have a poor consequence on implementation. Public-Private Partnership models, on its part, reassure by following up with risk-free mechanisms, high quality planning, and maintain transparency while working.

·       Vague Accountability: Decision-making is a vital part of the implementation. With P3 models, negotiation and working become more practical and eliminates questionable decisions.

·       Commitment Issues from the Delivery Team: One of the persistent issues of all time is lack of commitment shown by the delivery team. Where often times government lacks the mechanisms to incentivize or push delivery of the project, a private entity can push for completion. With the P3 model, the private parties will adopt a stricter yet a rewarding means to eliminate the attitude.

·       Disciplinary Issues: Major infrastructure projects from the public sector suffer numerous operational and management hurdles. With the P3 model, discipline and timely delivery are enforced, making the model more viable.

·       Poor Optimization of Features: P3 systems help in resolving the issues of proper optimization of resources and features. This is done by adapting to newer technology and doing feasibility research ahead of time.

·       Costing Issues: The traditional public projects often award contracts to the lowest bidding organization, not recognizing the quality and competency aspects that cost a project time and efficiency in the long term. Under the PPP model, the bidding can be optimized between both the parties.

·       Improper Resource Implementing: Resource implementation is a major issue in project delivery. P3 model can ensure delivering proper resource without wasting funds or time.

·       Poor Control: Poor Control does a lot more damage than we can contemplate. PPP models allot project-wise systems and resources, making the control more lucid and easy-to-use.


P3 is a tried and tested method, incorporating plan-specified outcomes. With more public sector projects collaborating with private bodies, the overall efficiency remains top-notch, and an optimal outcome is able to be achieved.