Pennsylvania legislature moves forward with public-private partnerships for transportation infrastructure projects.

On July 5, 2012, Pennsylvania Governor Tom Corbett approved the modernization of the procurement of infrastructure projects in Pennsylvania. The Governor signed legislation that authorizes public-private partnerships (P3) for road, transit and other transportation-related projects. The legislation will be used to fund and promote transportation projects to help provide an estimated $3.5 billion per year increase in investment needed in Pennsylvania for transportation infrastructure. The law has various provisions that will allow a public-private development of infrastructure-related construction projects. The increase in public-private development for transportation infrastructure should lead to increased construction projects in the Commonwealth, which will certainly lead to increased litigation in the coming years. Insurance carriers should be well aware that, as the economy improves and construction-related projects increase, legislation such as P3 will have a bearing on the amount of construction litigation in Pennsylvania.

Case Law Alert - 4th Qtr 2012