Chart: Why P3s Are Good Business for Design-Build Contractors

  • Contractors get paid for better ideas, not just “low

bid”

  • Opportunities exist to recover development costs

at financial close with success-fee premiums

  • Margins on design-build content are higher than

those common in EPC markets generally

  • O&M earnings provide steady long-term cash

flows

  • In addition to margins on design-build and O&M

scope, contractor-investors enjoy returns on their

equity investments

  • P3s capture the gains in project value that companies

create with successful development and

design-build delivery

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About Bill Reinhardt

Editor of Public Works Financing newsletter

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