In a DB contract, the government’s aim is to transfer more risk than is typical in a DBB contract. The design-build team crafts its bid based on the assumption that it will have enough control of the construction process to manage the additional risk. For a P3 to work well, government must relax its oversight role of the DB process and trust that the quality checking done for both the P3 lenders and equity investors will protect the public interest.

Making that leap has been difficult for many public owners.