Public-private partnerships can provide significant benefits for states. Potential advantages can include cost savings, cost predictability, reduced project completion time and greater private sector investment. By definition, PPPs give to private entities varying degrees of responsibility for project management and completion. The state and the private entity can agree on a set price, giving the state more predictability on project cost. Because the private entity wants to make a profit, it has greater incentive to reduce costs, improve efficiency and shorten completion time. The FHWA has estimated that PPPs can save as much 6 percent to 40 percent of the cost of construction and limit the potential for cost overruns.2