Resolving Disputes in Private Public Partnership Agreements

Careful attention must be given to managing potential disputes in Private Public Partnership (PPP) projects. PPP projects are inherently complicated, and involve many contractual participants. There is no steadfast answer as to which type of resolution method will fit a particular situation. The ability to adequately resolve disputes, which may arise at any point in the PPP’s hierarchy, is critical to ensuring the long term viability and profitability of any project.

In a typical PPP project, the master agreement represents a contract between the municipal government and a private consortium working to design, build, and operate the project. The private consortium will normally create a new entity, called a “special purpose vehicle” (SPV), solely for this undertaking. The SPV will be governed by a separate contract which will outline the rights and obligations of the private consortium’s members (a shareholders’ agreement). The SPV will then enter into various contracts, such as with a construction contractor, to build the project. The contractor will then enter into various sub-contracts, and these sub-contractors will frequently enter into sub-sub-contracts to accomplish particular tasks.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Michael Diaz Jr. - Diaz Reus International Law Firm | Attorney Advertising

Written by:


Michael Diaz Jr. - Diaz Reus International Law Firm on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.