The study from insurance company Travelers examined 224 heavy civil building projects between 2004 and 2020 that had contract values between $250 million and $2 billion. They encompassed bridge, highway, rail, tunnel and other large-scale civil work, and most were projects on which Travelers had been the surety or co-surety. The study, which has not yet been published, found that public-private partnerships (P3s) have proven to be the most money-losing procurement method for design-build contractors. Large construction projects primarily involve design-build work, where a design firm and contractor join forces, either through a joint venture or in a prime contractor/subcontractor relationship, to design and construct the project. The design-build team owns the design and the related risk. Contractors with design liability tend to see their profits fall significantly compared to those who share risk, the study shows.
https://www.constructiondive.com/news/report-p3-megaprojects-often-lose-money-for-contractors/606480/?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202021-09-30%20Construction%20Dive%20Newsletter%20%5Bissue:37048%5D&utm_term=Construction%20Dive