Under a conventional project-delivery method, ADOT finances both the design and construction of a transportation project. First, ADOT typically bids out and oversees the engineering design. Once the design is complete, ADOT then bids out and oversees the project's construction. Once the construction is complete, ADOT assumes the operations and maintenance of the facility. This process often results in change orders, which increase the cost of the project.
Under a P3, a private partner either finances or assists in financing a transportation project. ADOT bids one contract for the project, and the resulting P3 agreement covers both the design and construction of the project. It may also include the operation and maintenance of the facility by the private partner for a defined period of time. Typically, the private partner, not ADOT, is responsible for change orders.
The private partner is responsible for managing and operating the project for the term length, with ADOT serving in an oversight role. The private partner typically is responsible for adding future capacity to enhance the ongoing operations of the project. Under all circumstances, ownership of the project remains with ADOT.