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Public Private Partnerships (P3)

Alternative Delivery Choices for Public Projects

Publicly funded schools, hospitals and government agencies want to make best use of taxpayer investments in buildings.
A public private partnership provides an alternative delivery method for new facilities and renovations by transferring the risk of design, construction, finance and operations to the private sector. Best of all: Guaranteed fixed monthly payment terms and service levels.

Johnson Controls works with our P3 partners to Design, Build, Finance, Operate & Maintain (DBFOM) infrastructure projects throughout North America. Johnson Controls assists the design process to reduce the risk of O&M, Life Cycle and Energy Consumption. By implementing Johnson Controls building technologies provide sustainable operational results which are guaranteed to the Project.
Features and Benefits

P3 model enables governments to obtain a fixed cost of occupancy helping them accurately budget and manage new buildings and upgrades with private-sector guarantees. While the government organization maintains ownership of the asset, responsibility for the design, construction, financing, energy efficiency and ongoing operations is transferred to a private entity.

The government pays a structured monthly fee following Substantial Completion of the Project over a long concession term of 25-35 years provided the facility is available for use and within the client dictated service parameters (key performance indicators). Value for Money reports measure and verify savings creating greater governance and accountability, transparency and discipline of public spending.

Other benefits include:

  • P3 procurement creates budget certainty, avoids budget overruns and creates a fixed cost of occupancy.
  • Approach improves cost-effectiveness by taking advantage of private sector innovation, experience, flexibility and access to resources.
  • Projects create local jobs and economic development.
  • Service penalty regimes allow the government to levy escalating financial penalties necessary to quickly resolve performance issues creating improved performance vs. traditional government delivery methods.
  • Financial documents developed by trained technical and legal experts experienced in complex contracts.
  • 130 service branches throughout North America, with the backing of a global organization provide the support that P3 projects require for consistent, sustainable service delivery.
Wyandotte, MI, USA
Public Private Partnership delivers LEED® certified courthouse for Ontario
A private sector consortium was chosen to design, build, finance and maintain a major facility. Johnson Controls is responsible for the facility’s operation and maintenance for a 30-year term. The result is increased asset value, better reliability, and assured financial predictability as the courthouse has a fixed, monthly maintenance and asset replacement budget for three decades.