"Limited private sector involvement [in road building] has shielded the industry from market forces and discouraged the type of innovation that brings efficiency and cost savings." - FHWA Administrator Peters[33]
Public-private partnerships can result in significant project cost savings to States and local governments. For purposes of this report, cost-savings is defined as the difference between an engineer's estimate and the actual cost of an individual project. Data gathered to date indicate that projects built using a public-private partnership almost always save taxpayer dollars. The following discussion highlights the overall project cost savings associated with public-private partnerships and explores the financial benefits of the innovative contracting method of design-build, the use of warranties, and long-term performance contracts for maintenance and rehabilitation.