The Purple Line is a 16-mile light rail project in Maryland delivered through a public-private partnership (P3), where a private consortium (PLTP) was responsible for designing, building, financing, and operating the system. Despite strong initial support, the project faced major delays and hundreds of millions in cost overruns due to external “third-party risks,” including environmental lawsuits that halted construction, land acquisition delays, design changes required by outside stakeholders, and shifting regulatory interpretations. These issues led to growing disputes between the state (MDOT) and the private partners over who should bear responsibility for the added costs and delays, with contractors eventually claiming nearly 1,000 days of delay. By 2020, negotiations broke down, and the contractors issued termination notices, bringing the project to the brink of collapse while both sides simultaneously negotiated, litigated, and prepared for shutdown. The case highlights the limits of complex contracts in managing unpredictable risks and shows that large infrastructure projects depend not only on formal agreements but also on cooperation and flexibility between partners to succeed.

After reading this case, follow up with this case: Restructuring the Purple Line Project: Back on Track