FEDCON Summit: Public Private Ventures

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FEDCON Summit: Public Private Ventures

  1. 1. PUBLIC PRIVATE PARTNERSHIPS: DO WELL BY DOING GOOD Sarah E. Carson, Esq. secarson@smithcurrie.com (919) 455-0171 •  •  •  Managing attorney for the Raleigh office of Smith, Currie & Hancock LLP Concentration in Public Private Partnerships Participation in several locally and state funded P3 projects © Smith, Currie & Hancock LLP
  2. 2. BENEFITS OF PUBLIC PRIVATE PARTNERSHIPS •  Presents contractors with new opportunities •  Reduces development risks •  Provides more cost effective and timely infrastructure delivery •  Potential for better ongoing maintenance •  Leverages limited public resources © Smith, Currie & Hancock LLP Sarah E. Carson, Esq. (919) 455-0171
  3. 3. PUBLIC PRIVATE PARTNERSHIPS: RISKS FOR CONTRACTORS •  Many of the risks that are typically held in a design/bid/build project by the public entity are transferred to the private consortium. •  Long-term physical performance risks may be shifted to the private entity. •  Owner may request range of individual services that increase the contractor’s risk of “professional liability” •  May potentially cause gaps in insurance as CGL policies traditionally do not cover “professional liability” •  Contractor may be forced to purchase professional liability policies at significant cost to bridge gaps. © Smith, Currie & Hancock LLP Sarah E. Carson, Esq. (919) 455-0171
  4. 4. MINIMIZING RISK •  By being involved early in the process, contractors can ensure that the risks are most efficiently allocated and that contractors do not take on too much risk. •  Evaluate whether some risks are better held by the public entity. •  Identify each team member’s responsibility through necessary contracts and memorandums of understanding. •  Together with the insurer, bonding agent, and lender, contractors can evaluate the risks and determine if project is worthy opportunity. © Smith, Currie & Hancock LLP Sarah E. Carson, Esq. (919) 455-0171

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