How to Become a Player in the P3 Market
The advent of Public-Private Partnership based companies has done wonders in different industries and has boosted the economy in the right direction. In the US market, the P3 model has shown a massive impact in the E&C, or Engineering and Construction, business. With these developments playing a significant role, there are a handful of aspects a company must take care of to be successful in the P3 space. If you are leading an E&C company and want your company to be involved in a productive P3 project, here are the key points to remember:
Understanding the Goal of P3 Model
A public-private partnership company runs with mutually inclusive and exclusive ideas shared between the government and the private agency. The role of the private sector is to come to terms with budgets and obligations, bringing appropriate products to operate accordingly. In some cases, an SPV or a Special Purpose Vehicle is required to design, build, and maintain the asset for the tenure of the contract. The SPV is a panel comprising critical members from the firm, public sector representatives, bank financiers, and other stakeholders. In short, the E&C firms need to establish their credentials as a player in the industry with adequate experience in P3 models.
Analyzing Risk Factors
P3 Models have their major risk obligation factors embedded. The overall risk management needs to assess who is leading each piece of the project and investing money at which times as the investment in a public project is high. When executed well, the return is high productivity and can quickly return the revenue to partners when engaging in proper methods. For this, companies should enforce risk charts, financial models, and assessment that gives them a clearer picture of the same.
Enhance Skills
There is no limit to learning, and most E&C firms can learn a lot to boost their standing in these projects. As a leader of a project, a person can make better risk management strategies, budget out properly, and design a better model for public convenience by remaining educated on all aspects of the project. These are some critical aspects enhancing both the overall spirit of the company as well as the reputation of being a leader in the industry.
Final Thoughts
A P3 model is not abstract in terms of execution. Although there are plenty of factors that determine the project execution, the model itself delivers faster and productive delivery. With more and more projects coming up, experience and attention to detail can greatly assist the government in its decision process.
Interested in more P3 insights? Check out some of our other blogs on The History of the P3 Market and What's Next and the Top 5 ways to Align Vision of a PPP. If you want to learn more about how we develop effective strategies for public-private partnerships, reach out to us today to start a conversation.
