Why is government using a P3 approach to school construction?
Public-private partnerships (P3s) will provide value and save money by having one group of contractors design, build, finance and provide maintenance for several schools at once, resulting in efficiencies of scale. P3 projects also provide a guaranteed price and completion date with a 30-year warranty. Payments to the contractor are over the span of 30 years and depend on availability and performance. If the contractor does not perform, they cannot pay the lender. The lender ensures the contractor looks after the school for the full 30 years.
