The Outcome of Renegotiations between Institutionalized Public–Private Partnerships and Their Public Clients: Data on the Public–Private Partnerships of the German Federal Armed Forces

ABSTRACT

This study analyzes the renegotiations that take place between institutionalized public–private partnerships (PPPs) and their public clients drawing on survey data on the PPPs of the German Federal Armed Forces. Generally, both the party that initiates such renegotiations and the time at which renegotiations are launched determine the outcome of the PPP’s renegotiated remuneration. This effect is moderated by the degree of contract specificity and by a decrease in demand. Specifically, when the public client initiates the renegotiation of an incomplete contractual agreement due to a decrease in demand, it can successfully reduce the remuneration of the PPP.

KEYWORDS:

• Public–private partnership (PPP)
• remuneration
• renegotiation
• risk