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Thoughts from the NCSL Partners Project…

On the Usefulness of PPPs and Design-Build
"Public-private partnership initiatives can be very useful to states as they attempt to finance necessary transportation infrastructure projects. For example, in our state of Washington, the design-build procurement process has proven to be a contracting technique that encourages innovative project design and construction as well as faster delivery."

Senator Mary Margaret Haugen
Washington
Steering Committee Member, NCSL Partners Project on PPPs

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Analysts have identified several ways in which PPPs can potentially improve project quality. Innovative contracting methods can give a private contractor more flexibility to incorporate state-of-the-art technologies and techniques, which may result not only in better quality for one project, but also provide examples of best practices that can be applied to other projects.39 Use of warranties or performance-based payment arrangements can give a private contractor direct incentives to build a higher-quality project. Integrated project delivery approaches can also, in theory, encourage a private contractor to prioritize quality during design and construction, in order to lower costs during the operations and maintenance phase.40