Substantial US P3 opportunities expected

...and contractors can significantly benefit from an insurance broker that can offer extensive European PPP experience

The differences between public private finance contracts in the US and Europe (known as PPP in Europe or P3 in the US) were a real eye opener for delegates attending the recent "Public Private Finance (PPP) in the US and Emerging Markets" conference organized by Jardine Lloyd Thompson Limited, Peckar & Abramson and Allied North America.

The conference suggested how a combination of local knowledge and European PPP experience can be helpful to contractors as they consider entering the US market. According to Robert S. Peckar, Founding Partner of Peckar & Abramson, "the different legislation in the US that varies between the 50 states can be a real minefield for anyone without the right experience and knowledge".

This is coupled with distinctive risk and financing issues ranging from surety bonding to workers compensation and natural catastrophes such as windstorm and earthquake. William A. Marino, Chairman & CEO of Allied North America suggests "developers and/or contractors must be prepared to budget for much higher project insurance costs compared to those enjoyed in Europe. Third Party Liability cover is more expensive because of the litigious nature of the US market and to that you must add the cost of Surety Bonds and Workers Compensation Act insurance".

The US market is predicted to grow substantially in the coming years, as evidenced by the survey of delegates that revealed 66% believe that the US will be one of the top three countries in terms of PPP deal flow in the next 24 months. California, Florida and Texas were high among those States expected to benefit.

Paul Knowles, Managing Director of Jardine Lloyd Thompson's Construction Division and a recognized PPP insurance and risk speaker suggests that "in many ways the US exhibits the characteristics of an emerging market with a number of the P3 risks, particularly from an operational perspective, new to the US insurance market. The European insurance market now has nearly 15 years experience of underwriting major PPP risks and can bring this expertise to bear, assisting in enhancing value for money within the P3 transactions and delivering greater certainty to all the different contractual parties.

Jeff Powell, Chairman of Jardine Lloyd Thompson's Construction Division concludes, "Developers and/or contractors should not miss the opportunities of PPP construction projects in the US as long as they have the right expertise in place to support them. An insurance broker and risk consultant with extensive PPP experience and knowledge combined with local expertise both in terms of insurance and legal advice".

--ENDS--

Enquiries:
Jardine Lloyd Thompson plc
Isabella Young
Tel: 020 7528 4444
EMAIL

Editor's Notes:

About Jardine Lloyd Thompson Limited (JLT)
Jardine Lloyd Thompson Limited (JLT) is the largest member of Jardine Lloyd Thompson Group plc, a company listed on the FTSE 250 index of the London Stock Exchange. The Jardine Lloyd Thompson Group is a risk management adviser, insurance and reinsurance broker and provider of employee benefit administration services and consultancy advice.

JLT provides market leading industry knowledge and expertise in specialist fields to some of the world's largest companies. What sets us apart is the quality of our people and the environment we have created. It allows individuals to work together as a cohesive and focused team without internal boundaries, promoting personal accountability and responsibility for the benefit of our clients and other stakeholders.

It is this different style of approach that has helped us to become a world leader in Construction. With our team of over 100 construction insurance professionals, JLT is unquestionably the UK's leader in managing global construction risks. Our reputation for excellence, built on knowledge and performance, makes us the partner of choice in many of the world's major construction projects from major sporting stadium projects to mass transport systems. Our PPP team was established in 1994 and has since become the UK's largest insurance broker and one of the world's leading advisers managing insurances for over 200 PPP projects with a value exceeding £30 billion.

Lloyd's Broker. Authorised and Regulated by the Financial Services Authority. A member of the Jardine Lloyd Thompson Group. Registered Office: 6 Crutched Friars, London EC3N 2PH. Registered in England No. 01536540. VAT No. 244 2321 96

About Allied North America
At Allied North America, our commitment to construction industry is unmistakable - it's our only focus. It's evident in the depth and breadth of our in-house expertise; in our investment in leading edge, client-focused technology, and in our expanding footprint of offices from coast-to-coast. Now, you'll also see it in a stronger presence for our company at key industry associations and conferences: One that better reflects our leadership position as the risk management specialists to the construction industry.

Since the firm's inception, the corporate philosophy has remained consistent - provide superior service to all clients. Allied prides itself on understanding the needs of the clients and developing risk management solutions through an intricate knowledge of the construction, insurance and surety industries. Our over 450 professionals all have resumes that speak to their extensive experience in construction, law and finance.

Established over 30 years ago with a core group of insurance professionals, Allied has since become one of the largest construction-driven independent risk managers in the country and emerged as a leader in the insurance and surety industries. As a national company, with offices in all regions of the United States, we are well situated to handle the diverse risk management needs of our clients in all areas of the country.
http://www.alliedna.com/

About Peckar & Abramson
Peckar & Abramson has been serving the construction industry for 30 years. The firm has achieved national recognition in the US for its successes in the representation of members of the construction industry, in particular general contractors and construction managers, both domestically and internationally.

With offices around the US and affiliations with other law firms around the world, Peckar & Abramson offers a full range of legal services to its domestic and international construction industry clientele.
http://www.pecklaw.com/