1. PUBLIC PRIVATE
PARTNERSHIPS:
DO WELL BY DOING GOOD
Sarah E. Carson, Esq.
secarson@smithcurrie.com
(919) 455-0171
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Managing attorney for the Raleigh office of Smith,
Currie & Hancock LLP
Concentration in Public Private Partnerships
Participation in several locally and state funded P3
projects
© Smith, Currie & Hancock LLP

2. BENEFITS OF PUBLIC PRIVATE PARTNERSHIPS
• Presents contractors with new opportunities
• Reduces development risks
• Provides more cost effective and timely
infrastructure delivery
• Potential for better ongoing maintenance
• Leverages limited public resources
© Smith, Currie & Hancock LLP
Sarah E. Carson, Esq. (919) 455-0171

3. PUBLIC PRIVATE PARTNERSHIPS:
RISKS FOR CONTRACTORS
• Many of the risks that are typically held in a design/bid/build
project by the public entity are transferred to the private
consortium.
• Long-term physical performance risks may be shifted to the
private entity.
• Owner may request range of individual services that increase
the contractor’s risk of “professional liability”
• May potentially cause gaps in insurance as CGL policies
traditionally do not cover “professional liability”
• Contractor may be forced to purchase professional liability
policies at significant cost to bridge gaps.
© Smith, Currie & Hancock LLP
Sarah E. Carson, Esq. (919) 455-0171

4. MINIMIZING RISK
• By being involved early in the process, contractors can
ensure that the risks are most efficiently allocated and
that contractors do not take on too much risk.
• Evaluate whether some risks are better held by the public
entity.
• Identify each team member’s responsibility through
necessary contracts and memorandums of understanding.
• Together with the insurer, bonding agent, and lender,
contractors can evaluate the risks and determine if project
is worthy opportunity.
© Smith, Currie & Hancock LLP
Sarah E. Carson, Esq. (919) 455-0171