A new white paper published by Canadian Council for Public-Private Partnerships (CCPPP) and Service Works Group argues that a strong and enduring contractual relationship can help address the operational management challenges o public-private partnerships (P3s).

The paper was written in consultation with Dr. Mark Hellowell of the University of Edinburgh and drew on experiences from the most developed PPP markets, such as those of Australia, the United Kingdom, and Canada. The paper reviews the key challenges presented by the operational phase of PPP contracts and examines good ideas for addressing them, focusing on the aspects most relevant to the creation of strong, enduring relationships between the public and private sector parties. It illustrates the need for clear contractual documentation based on a mutually agreed interpretation of the contract, alongside high quality, objective and mutually accessible data on activities and performance.

Gary Watkins, CEO of SWG said, “A key part of the premise of the PPP model is the focus on achieving value for money over the project’s lifecycle, helping to avoid the widespread tendency of governments to underinvest in operations and maintenance. This report therefore focuses on the aspects that are most relevant to creating strong and enduring operational relationships between the public and private sector parties. It helps provide guidance and best practice in PPP relationship management.”

Mark Romoff, president and CEO of the CCPPP added, “Potential problems need to be identified, assessed and mitigated at an early stage, not responded to as they emerge. Preventative action begins prior to contract signature, so the insight contained in this new publication is essential reading for anyone involved in the operational phase of PPP contracts.”

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Within the report, the authors provide recommendations on:

  • Developing a robust and effective partnership
  • Translating the contract into a clear performance management system
  • Understanding the benefits of accurate information and communication
  • Adopting appropriate performance management software

To read the full report, visit:

http://www.swg.com/white-paper/operational-phase-of-ppps/

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