Home>Levelset Community>Legal Help>Can you offer some general information on P3 projects - Public Private Partnerships - where the bond may not be required or it may have a private bond instead of a Miller Act bond?

Can you offer some general information on P3 projects - Public Private Partnerships - where the bond may not be required or it may have a private bond instead of a Miller Act bond?

CaliforniaBond Claims

No situation yet. Just like to be prepared and heard about P3 on an NACM webinar. Would like more info on how to manage them through Zlien.

2 replies

Sep 7, 2017

P3 projects can be very difficult to manage in terms of payment security - what's the avenue for recovery: a mechanics lien, a bond claim, or what? In fact, we have written about these issues multiple times on our blog, you can take a look there for some more information, as well. Some helpful places to start might were here: https://blog.zlien.com/construction-payment/public-private-partnerships-whats-protection/ https://blog.zlien.com/construction-payment/multibriefs-publishes-p3-projects-payment-problems/

While some states have specific P3 legislation, https://news.zlien.com/protection-provided-for-kansas-p3-projects/, the majority don't so the appropriate avenue to recovery is dependent on the "actual" underlying project type or property. Practical speaking, if there is a bond on the project, the bond may provide the most accessible avenue to recovery as any potential mechanics lien (even if applicable) would likely on;y be ab;e to attach to the private interest in the property and not the underlying property itself.

You are correct that there could be a bond on the project not governed by the state's little miller act (or, if a federal P3 project the federal Miller Act). In these cases, the applicable requirements would either be set out by the bond itself, or, in some situations by the private bond claim section of the state's statutes.

The fact of the matter is that general information regarding how to go about navigating a claim for nonpayment on a P3 project is difficult since the projects are generally required to be examined on an individual basis. However, obtaining a copy of the bond (if there is one) at the beginning of the project is a good first step and can go a long way in simplifying any eventual claim.

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Jun 5, 2023

Depending on the state, the timing and the underlying contracts, a lien may be feasible. It depends on the terms of the specific deal as to what lien rights, if any, are present. I need more facts to help you further, like what state and who is the landowner.

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