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Build America Transportation Investment Center (BATIC) Institute: An AASHTO Center for Excellence
Build America Transportation Investment Center (BATIC) Institute: An AASHTO Center for Excellence

BATIC Institute Events

Webinar Series: Innovation in Practice

Performance Incentives for P3s

This event took place June 24, 2020.

Webinar Video

Other Materials

Event Description

Performance incentives are used to optimize project delivery in Public-Private Partnerships (P3). Often, the P3 project agreement uses contractual provisions to ensure that these benefits are achieved. This webinar discussed incentives that stimulate developer performance. Speakers also described how incentives may be used in different phases of the project lifecycle. The speakers and participants discussed: minimum revenue guarantees, milestone payments and early completion payments, risk sharing mechanisms (such as allowing the developer to access contingency funds to manage unknown risks or setting a threshold on single or cumulative claims that allows the developer to keep funds if no claims are made), and setting appropriate service/availability/performance standards to earn cash incentives. The webinar offers a better understanding of the array of performance incentives that state DOTs may use throughout the P3 lifecycle.