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Research Report

Navigating Public-Private Partnerships

P3s offer many potential benefits that help institutions address critical funding and infrastructure challenges in higher education.

As higher education faces significant funding and maintenance challenges, institutions are increasingly leveraging public-private partnerships (P3s) to achieve their infrastructure goals.

Once viewed primarily as a means to secure additional funds for major capital projects, leaders increasingly use P3s to transfer the long-term risks of ownership, management, and maintenance, as well as to reap the benefits of private sector expertise.

Effective P3s can provide numerous benefits, such as expedited project delivery, access to private sector financing and expertise, and facility lifecycle maintenance.

 

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This resource is part of The Essential Guide to Cost Containment Strategies for Higher Education. Access this guide for 500+ critical tactics for immediate and long-term cost savings.

 

Though the potential benefits of P3s are attractive, moving too quickly on a P3 deal can lead to major financial consequences. In many cases, problems arise when institutions fail to sufficiently evaluate the feasibility of a P3, secure buy-in from campus leaders, or establish necessary governance processes.

To help leaders avoid these pitfalls and better navigate public-private partnerships, this publication offers high-level guidance to successfully evaluate, plan, and execute a P3.

Ten imperatives to evaluate, plan, and implement a P3

This section details ten imperatives to help senior leaders evaluate, plan, and implement a P3 to build new campus facilities and infrastructure. The first three imperatives focus on evaluating the viability of a P3 and selecting the delivery method that best aligns with project objectives. The next three imperatives focus on establishing a team and governance processes that optimize two crucial aspects of a P3 deal: risk allocation and financing. The following…

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