A Public-Private Partnership (PPP) contract is a long-term agreement between a private party and a public entity for providing public service. In such contracts, the private sector mostly bears risks (financial, technical, operational, etc.) and management responsibility.
These contracts help formally define the relationship between both sectors, their responsibilities, sharing of risks and change management mechanisms. These are long-term contracts, with enough time for the private partner to recover costs of investment.
A draft contract is typically prepared before the final one is agreed upon and closed. A well-designed contract is clear and comprehensive and fosters certainty for the contracting parties. However, when preparing these contracts, care should be taken to maintain enough flexibility to afford changes in future.
Involving the future contract manager or authorities is one way to facilitate seamless change management in contracts. Effectiveness of PPP contracts is largely dependent on the negotiation of these contracts.
Negotiation is a dynamic process of argument and eventual agreement of the two parties to a set of common goals and objectives and related clauses of work.
Negotiation of PPP contracts is extremely important as it determines and confirms terms and conditions for the long-term association between the two parties, keeping in mind and making provisions for future adjustments and changes in case of amendments.
Re-negotiations are not preferred because of various reasons, and hence, it is extremely necessary that the initial contract negotiations are clear and effective. Managing PPP contracts involves monitoring and enforcing PPP contract requirements and managing the relationship between the public and private partners. Contract management spans across the tenure of the contract.
Like negotiation, management also needs to be flexible in terms of resources and skill to be able to meet expectations through the life cycle of the project.
The main objective of PPP contract management is to ensure that the output matches the expectations and the specifications set out in the contract and that there are provisions for ongoing affordability, value for money, appropriate risk transfer management, etc. Appropriate contract management also involves anticipating future needs and reacting appropriately to unforeseen circumstances.
This training course will empower you with an in-depth understanding, experience and skills to successfully negotiate and manage PPP contracts. Further, through this course, you will gain experience and exposure to different situations and challenges related to PPP contracts.
You will also acquire the required skills and perspective to foresee possible changes in contracts in future and address these in advance or at least make provisions for such changes in the contracts.
The knowledge and information gained through this course will prepare you with adequate confidence, experience as well as negotiation and management skills to play a key role in PPP contract development, negotiation and management. It will also equip you to assume higher roles and responsibilities and pave a certain and fruitful career path for yourself.