CP3P Cheat Sheet 2026

The 30 highest-yield CP3P facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Why does a Public Sector Comparator include a risk adjustment? → To reflect the cost of risks the public sector would keep under traditional procurement
2. What ethical standard governs communication and documentation practice? → Adherence to the profession's code of ethics and applicable laws and regulations
3. What is a key benefit of developing a communication strategy early in the PPP project cycle? → It helps manage stakeholder expectations and reduces opposition risk
4. In an operational PPP, what is the role of an independent engineer or certifier? → To impartially verify milestones, completion, and sometimes performance
5. Which federal agency sets and enforces workplace safety standards that apply to construction crews on a US P3 project? → Occupational Safety and Health Administration (OSHA)
6. Under a typical PPP contract, what does a 'relief event' give the private partner? → Extra time to perform and protection from termination, but no financial compensation
7. Which practice best manages conflict-of-interest risk among an authority's PPP transaction advisors? → Requiring disclosure and prohibiting advisors from serving bidders on the same transaction
8. Which factor typically makes a PPP's weighted average cost of capital higher than government borrowing costs? → Private financing includes risk premiums for equity and project-level debt
9. Which statement best describes 'bundling' in a PPP? → Combining design, construction, finance, and operation/maintenance into a single contract
10. Which stage typically precedes the development of a P3 feasibility study? → Needs assessment and project identification
11. In the EPC contract, what are the delay liquidated damages usually sized to cover? → The SPV's debt service and lost revenue during the delay
12. A retained risk has a 20% chance of causing a $5 million cost overrun. What is its expected value? → $1 million
13. Approximately how long before contract expiry should a procuring authority typically begin handback planning and condition surveys? → Several years before expiry, often 3-5 years
14. In P3 infrastructure planning, what does an 'output specification' primarily define? → The performance outcomes and service levels the private partner must deliver
15. Which US law prohibits US companies and individuals from bribing foreign officials, which is relevant to US firms bidding on PPPs abroad? → The Foreign Corrupt Practices Act (FCPA)
16. Why is reflecting on how learning was applied an important part of CPD? → It turns knowledge into improved practice and shows the impact of learning
17. Lenders to a PPP project company look closely at the Debt Service Coverage Ratio (DSCR). How is it calculated for a period? → Cash flow available for debt service divided by debt service due
18. A procuring authority prepares a 'shadow bid' model during structuring. What is its main purpose? → To estimate a realistic private-sector bid and test bankability and affordability
19. The equity IRR in a PPP financial model represents: → The discount rate at which the NPV of equity cash flows equals zero
20. Under a shadow toll PPP, who pays the private partner, and who carries the usage risk? → The government pays per vehicle; the private partner carries the usage risk
21. In a multi-criteria analysis (MCA) used to compare project options, what is the role of weighting? → To reflect the relative importance of each criterion in the overall score
22. Which practice best demonstrates commitment to lifelong learning for a CP3P holder? → Setting yearly learning goals and tracking completion across PPP topics
23. In a user-fee (demand-risk) concession, what is the authority's primary monitoring focus compared to an availability-payment PPP? → Compliance with tariff rules, service standards, and concession obligations
24. Which analysis helps determine the minimum project size that makes P3 procurement cost-effective given its higher transaction costs? → Minimum viable size or threshold analysis
25. Which contract type transfers the least lifecycle responsibility to the private sector? → Design-Build (DB)
26. Which stakeholder group is most often targeted by a public consultation on a proposed PPP highway project? → Affected communities and end users
27. Why is a PPP contract usually based on output specifications rather than input specifications? → They let the private partner innovate in how it meets required service levels
28. What is the main reason PPP contracts include refinancing gain-sharing clauses? → To allow the authority to share in windfall gains from improved financing terms
29. Which mechanism best enables employees to report suspected misconduct in a PPP program without fear of retaliation? → A protected whistleblower channel with confidentiality safeguards
30. What is the main purpose of a risk matrix in PPP structuring? → To list each risk, its allocation, and its mitigation in one place