This is a specialized method for special construction projects where public (government interests and funds partner with private companies to cooperate and share risks and benefits. Sometimes termed "Alternative Financing and Procurement (AFP)," projects, PPP's are especially attractive when greater capital investment is needed. AFP/PPP project delivery method shifts the major risk contingencies from clients to firms that specialize in this construction project model such as big developers, construction contractors, industry consultants, suppliers & specialty service providers.
AFP contract type
1. Build-Finance (BF)
2. Design-Build-Finance (DBF)
3. Design-Build-Finance-Maintain (DBFM)
4. Design-Build-Finance-Maintain-Operate (DBFMO)
The benefits to client
The client enjoys the fact that the majority of the risk component is assumed by the risk management entity that contracts many aspects of the project, especially operating costs and progress/deadline schedules. For this reason, projects can be undertaken with an optimum level of cost reliability, meeting target progress dates, quality work, materials availability, and excellent service. Kai Ridge Hawaii is 100% competent to undertake and work with this construction model.