Preventing Renegotiation, Fostering Efficiency

Lawyers usually say that “the best contract is the one you never have to pull out of the drawer”—a view that focuses on trust, common understanding, and mutual advantages. And then they will add that PPP contracts, even with the best government–business relationship, are a bit more complex. That’s because they are based on incentive mechanisms that require not only regular monitoring, but also some degree of cooperation and a modicum of strategic management—the three components of PPP contract management.