One critical provision of a P3 agreement relates to what is known as the “handback” phase of the project. The handback is the transfer of the project from the private sector to the public sector at the end of the P3 agreement. Due to the lifespan of P3 agreements (99 years is not an uncommon term), the individuals negotiating the P3 agreement will not be the same individuals dealing with the handback
Contractual Risk Transfer Defined With any kind of commercial property development, the parties involved face risk
Such a change occurs if: at least 20% of the borrower's equity is transferred (including to an affiliate), 50% or more of the borrower’s assets (measured by FMV) are transferred or the PPP borrower is merged into or with another entity.
One of the following two conditions must be met: The customer must have control of the asset as it is built or improved, or The asset must have no use to you; therefore, you have right to the payment. Recognizing revenue at a point in time involves recording revenue for each performance obligation as it is completed or when the customer takes control of the asset. Control of the good or service is defined as “when the customer has the ability to direct the use of or can benefit from the transferred good or service.”
Alleged Preference Payments Consisted of Funds "Earmarked" for Transfer Down the Construction Project Chain Even if the non-debtor participant does not hold a mechanic's lien and is not otherwise a secured creditor, there are other defenses that may apply in response to the preference demand given the unique relationship among construction project participants
Consequently, the timing of a valuation is critical in order to take advantage of the current ability to transfer greater amounts of wealth with lower tax consequences
While there is no statute or published caselaw governing the enforceability of pay-if-paid provisions in New Jersey, the court acknowledged that several states recognize these provisions as valid and enforceable where the language clearly transfers the risk of non-payment from the contractor to the subcontractor
The Maryland P3 statute enables the use of a P3 for the delivery of a “Public infrastructure asset” – a capital facility or structure, including systems and equipment related to the facility or structure intended for public use
The number one issue construction contracting companies will face over the next 10 to 20 years is succession planning, according to accounting firm BKD, LLP . As the amount of wealth in the nation transfers generations, that also includes wealth tied to family-owned firms. The orderly transfer of control and assets is critical to the future success of these owner-managed or family-run enterprises. A lack of planning and clear succession causes many problems for companies and can be incredibly stressful for family members, owners and employees
Governing Law This agreement is governed by and construed in accordance with the laws of the State of Maryland without giving effect to any principles of conflicts of laws. If any provision of this agreement shall be unlawful, void, or unenforceable, then that provision shall be deemed severable from this agreement and shall not affect the validity or enforceability of the remaining provisions