Faced with political opposition and inconsistent rules from state to state, public-private partnerships used to finance public transportation projects lag in the U.S., compared to Europe and Australia, says a new survey by McGraw-Hill Construction, the parent of ENR. The analysis is based on detailed interviews of 75 state and municipal public-works officials with varying levels of PPP experience. About one-third of survey respondents were currently involved with the approach or used it in the last decade. According to the survey, the biggest PPP obstacle is respondents’ perception of “unacceptable profits” by private developers. Other negative perceptions cited are tolling
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.