Ratings agency Fitch has said it expects to see a rise in the use of progressive construction models as contractors look to manage the impact and volatility of inflation.
Current inflation, supply chain and labor shortages could preclude contractors from entering fixed-price P3s, a trend which Fitch says that multiple firms have already initiated over the last couple of years.
Progressive P3s, which allow for greater collaboration between parties, generating “greater clarity on project costs and reduces design risk/liability,” are already "gaining traction" on large and complex projects in the USA and Canada.
According to data from US Census Bureau’s Value of Construction Put in Place Survey construction spending was up 8.3% in June compared to last year.
To read our latest feature article on the impact of inflation on the P3 industry, click here.