The private sector is exposed to competitive pressures that are difficult to replicate for public agencies. This provides a private partner an edge in efficiency in carrying out the capital (design, construction) and operating phases of the project. For infrequent or new projects, the private sector can also have more recent experience and leading technical skills. The private sector is also well placed to access quality and skilled manpower and technology and hold its employees, suppliers and vendors more accountable to performance; whereas for a public entity it is difficult to perform in a similar manner. A well designed and managed PPP should take advantage of the potential for efficiency gains from using the private sector. The reason for increased efficiency is: the allocation of risk and the associated performance rewards and penalties. It creates incentives in the PPP contract that encourage the private partner to achieve efficiency at each stage of the project and to introduce efficiency improvements where possible.