It is not uncommon for engineering firms focused on infrastructure projects to monitor spending bills that are geared towards infrastructure projects at the federal, state, and local government level. With sources of government funding for infrastructure projects severely limited, the private sector has become increasingly interested in investing in infrastructure projects by creating partnerships with public entities. Recently, Kohlberg Kravis Roberts announced that it had raised $3.1 billion for a new fund that will be focused on investing in infrastructure projects like roads, water supply systems, and energy pipelines. With an aging infrastructure in need of a major overhaul, it is increasingly likely that in the future more firms will be working on projects financed at least in part by private sector money.
In the most recent issue of our policyholder newsletter, Guidelines for Improving Practice, we wrote about public-private partnerships potentially being used to achieve high-performance buildings.
The idea of applying the P3 concept more to buildings, and especially building performance, is a potentially promising new approach, according to two organizations focused on leadership in the built environment. The National Institute of Building Sciences (NIBS) and the Royal Institution of Chartered Surveyors (RICS) are bringing together international experts to explore ways public-private partnerships can be used to address current government challenges and advance the achievement of a high-performance building stock.
It appears that the public-private partnership model is gaining more and more traction in the construction industry.