Some observers have noted that economies of scale are one of the benefits of P3 procurements, because contractors are able to organize their work more efficiently.24 For example, if a contractor is responsible for multiple bridges or overpasses in a section of highway, such as the Anthony Henday Drive Southeast Leg Ring Road, the contractor can have one crew install all the girders, moving from one structure to the next, with a second crew following with a different task, and so on.
There are indeed economies of scale from organizing construction work in large projects as opposed to undertaking the same work under multiple contracts awarded to different contractors. However, these economies of scale can be achieved in a single turnkey construction project or in a design-build project. It is not essential to undertake a P3 procurement as defined in this report in order to capture these economies of scale.
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24 For example, see Vining and Boardman, "Public-Private Partnerships," pp. 12-13. At least one of the interviewees for this report also mentioned economies of scale as one of the benefits of P3s. (See Appendix D for the full list of interviewees.)