The I-69 Section 5 project involves the first replacement of a nonperforming contractor in the U.S. under the P3 procurement model and is the subject of this case study. The procurement proceeded as envisioned under the Public Private Agreement (PPA or concession agreement). However, the risk sharing and mitigation tools did not adequately prevent a series of problems which grew worse as more problems surfaced, exacerbating schedule delays and, later, funding gaps. In the US, other projects have experienced similar bumps in the road and corrected midcourse. The question here is – why was this project unable to make corrections and how can future projects resolve issues before they become catastrophic?
A P3 procurement is a risk-sharing model—each risk is allocated to, or even shared by, the party best suited to handle it. The risks are shared amongst the parties—the granting authority, developer/sponsor, and design build contractor (contractor).