The impact of contract characteristics on the performance of public–private partnerships (PPPs)

Abstract

Four significant features of public–private partnership (PPP) contracts are analysed to understand their impact on performance. These are whether the contract allows sanctions to be imposed; its complexity; its flexibility; and whether renegotiation is possible. The effects of these characteristics were investigated by surveying participants in all of the PPP projects in The Netherlands. The only feature considered to have any significant impact on perceived performance was the possibility of imposing sanctions. The authors’ findings cast doubt on earlier research into managing PPP performance and suggest that researchers, governments and the private sector need to look beyond contract terms to properly understand and manage PPP performance.

Keywords:

• Contracts
• performance measurement
• PPP
• public–private partnerships

Acknowledgements

This paper was written as a result of the research project ‘Governance for smartening public private partnership’ implemented in collaboration with the University of Twente and financed by the NWO (Dutch research Council: No. 409-14-014) and co-financed by NSOB, Deltares, Rebel group, Resetmanagement, Twijnstra Gudde and Rijkswaterstaat.

Additional information

Notes on contributors

Erik Hans Klijn

Erik Hans Klijn is a professor of public administration, Erasmus University Rotterdam, The Netherlands.

Joop Koppenjan

Joop F.M. Koppenjan is a professor of public administration, Erasmus University Rotterdam, The Netherlands.