When it comes to Public-Private Partnerships, trust is key to maintaining balance between government and Wall Street. Given the current economic state on a global scale, industry leaders from both the public and private sector need to think and invest intelligently when it comes to much-needed infrastructure all around the world.
From avoiding and planning around under-spending to understanding fiscal constraints to risk assessment and strategy alignment, consulting with professionals who are well versed in the field of public-private partnerships could mitigate losses and risk, and develop profitable and sustainable projects for the long term.
The Importance of Trust in P3
Private industry leaders may (and oftentimes do) have different agendas than those in the public sector which can make or break the overall success of the project. For this reason, it is of the utmost importance to make sure that all parties are on the same page and actions are in line with the project’s primary goals and objectives. When key points fail to align and goals remain unclear, the project is doomed from the start.
At the guidance of expert consultants, this kind of risk could be significantly mitigated.
A Middle Ground — Third Party Keeps Balance
Objective parties, such as consulting firms, allow for an unbiased point of view that gives both parties peace of mind. Public-Private Partnership consultants can advise on contributions and weaknesses from both the private and public sectors. As these partnerships are, essentially, collaborations between a private party and a public, government agencies (the public component) are almost always held accountable against certain parameters set forth by the public party on how the conceptual project becomes a reality.
Identifying and fulfilling these parameters is an area in which a consultant can assist. Each party must maintain their own identity, but coordination of each party’s expectations as well as the intended methodology each party intends to implement, is a must to avoid breaches of contractual obligations and neglecting industry best practices.
Brittany Sharpton Darryl K. Sharpton Miami Florida CPA Sharpton Accounting Economic Consulting Strategic Advisory Lobbyist Forensic Accounting