With 17 projects reaching financial close since 2017, California is the most active P3 state in the USA in terms of completed P3s in recent years. It also has the fullest pipeline. So it was no surprise to see it receive an A grade in our recent P3 Report Card, created in partnership with the Global Infrastructure Investor Association ("GIIA").
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That has likely been influenced by the challenges experienced in the Presidio Parkway project. Patrick D. Harder, partner at law firm Blank Rome, refers to “an ultimately unsuccessful legal challenge that challenged the state’s authority to use a P3 contracting structure for the project”.
That challenge went all the way to the California Supreme Court. Harder explains that the claimant was the Professional Engineers in California Government ("PECG") labor union, which represents engineering professionals working on infrastructure projects for state public agencies in California.
“California is unique in that most state infrastructure projects are designed by public employees (who are members of PECG),” explains Harder. “Because it wants to protect the jobs of its membership, PECG is generally opposed toP3 and design-build contracting for public infrastructure, especially transportation infrastructure. This is at the heart of why there are not many statewide P3 projects in California, especially in the transportation sector.”
However, Harder adds: “There is a role for public sector engineers to play onP3 and design-build projects in terms of owner oversight and inspection, and these delivery methods help increase deal flow (which counterbalances any engineering work that may be performed by the private sector instead of by public employees).”
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"California’s Complicated Relationship with P3," was published in Partnerships Bulletin on June 10, 2026.