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Legislative Update 

February 2016 

Senator Kowall (Republican, 15th District) recently introduced SB627 as the “Michigan Alternative Project Delivery Act,” which is intended to create a P3 statute if and when it moves through the full legislative process. A “public-private partnership” (P3) is a contractual arrangement between a public agency and a private sector entity. Understanding the inherent risk in P3’s is particularly important for subcontractors because your company may not have the ability to file a lien. 

For a brief overview of the proposal, Sec. 11. (1) says (emphasis added): “Notwithstanding any other provision of law, the public authority is authorized to include in a public-private agreement any provision that the public authority determines is necessary or appropriate.” According to the proposed language in Sec 11. (1)(b), public-private agreements may include “Provisions addressing payments on terms determined by the public authority, which may include without limitation milestone payments, progress payments, availability or service fee payments, and other compensation”; and in Sec. 11. (1)(c): “Provisions requiring that the private party or 1 or more of its prime 

By Ken Misiewicz 
Pleune Service Company

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