Interpretation ‘biggest risk' in PPPs

20 March 2017 Exclusive: Figures from our survey in collaboration with O&M performance management software provider, Service Works Group (SWG), has found that practitioners believe contract interpretation to be the biggest risk factor in operational PPP projects.

According to the results of our survey, 53% of respondents believe different interpretations of the contract are a key risk to a project’s operational success, closely followed by poor contract documentation on 43%.

The figures demonstrate the importance for those involved in operational PPP projects to make sure they are on top of their contracts and ensure that all parties in the contract are interpreting clauses in the same way.

“Transparency and mutual understanding around contract terms and how they are to be applied in practice is critical,” said Nia Swift, director at SWG.

The findings are the latest from the survey, which also found that cost-cutting in contracts is having a damaging impact on relationships.

To read the full results of the operational PPPs survey, see the upcoming April issue of the magazine.

This page was last updated on:
22 January 2018.

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