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A P3 Helped America Win Independence.

Here’s How It Can Help You.

As you look around and see infrastructure in need of renewal, and not enough capital to pay for it, remind yourself of the triumph of the Continental Army.

In 1777, after a grim winter spent at Valley Forge, the struggle for American independence was taking its toll on General George Washington and the Continental Army. Six years later, as we know, the British Army surrendered in Virginia.

Credit for the American victory goes to Washington’s bold leadership, of course, and many other variables.

But there was one instrumental advantage often overlooked by the history books.

The integral role of private contractors.

Yes, according to GOVERNING’s Guide to Financial Literacy, the Continental Congress authorized a reorganization of the army’s supply system in 1777. This move gave private contractors freedom to manage the logistics of maintenance and operations for transportation and other support functions.

The P3 helped secure a win.

250 years after that victory, here are six reasons why the private sector can be a winning partner in your pursuit of progress.

1. Low risk

With a public-private partnership, you transfer risk to develop, design, construct and finance new capital improvements to your private-sector partner.

2. Saves time and money

A P3 helps you save on startup costs by transferring initial capital costs to your partner. This can accelerate delivery of your project. By accessing outside capital markets (private) to finance your facility, you’re able to publicly fund other projects or operations.

3. Gives access to unique resources

A strategic P3 taps the symphony of expertise and resources offered by your private sector partner. For example, there are any number of ways to finance projects that the private-sector does all day, every day that become options for you. Beyond financing, your partner may have expertise in land development, real estate, project design and procurement — any or all of which will only enhance you project.

4. Comes with a guarantee

The facility schedule and costs are guaranteed upfront. If there are any budget overruns, it’s your private-sector partner that has to take care of them.

5. Simplifies O & M

If you choose, your private-sector partner can operate and maintain the public facility while you lease it, hassle-free.

6. Offers budget certainty

By knowing the cost of your improvement ahead of time, you are better situated to address the rest of your budget. Both long and short term.

Is a P3 right for your next project? At SEH Design|Build, we’re helping clients simplify tough financing decisions through creative financing tactics, including public-private partnerships.