Negotiating and Managing PPP Contracts

About the Course

PPP contracts differ from many other types of contracts that government bodies enter. By necessity, they are often complex and incomplete. To this end, flexibility and the capacity for change are at the heart of the best arrangements. This flexibility stretches beyond contract terms and goes to the heart of both skills and resources which need to be available and deployed throughout the whole life of the contract. For example, we will consider the core differences between social and economic PPPs. Hospitals and Toll motorways have completely different risk structures. One is people-heavy, and the other significant concerns maintenance. Therefore, each contract must be looked at separately. It’s not just deleting and copying fresh wording into a template. 

This Negotiating and Managing PPP Contracts training course will examine the different risk profiles attending different types of contracts. Transfer of responsibility is a key part of the negotiation skill set required for those entrusted with spending the public purse wisely. It will also contrast the different negotiating stances taken by contractors during the PPP bidding process. There is some question about the efficiency and cost of PPP structures compared to standard commercial contracts and whether the client should ask for an RFP or go straight to an RFQ. These and many other related issues, such as SPVs presenting consortium bids and the detail needed to be presented, will all form part of the subject matter.

Core Objectives

The delegates will achieve the following objectives:

• Learn to analyse the suitability of projects for PPP effectively
• Assess risks of projects and how to negotiate responsibility
• Understand how to work with lawyers to draft PPP contracts efficiently
• Know how to deal with conflict in negotiating contracts
• Weigh political and economic benefits of PPP
• Learn how to keep the project on track
• Successfully manage termination scenarios

Training Approach

This training course puts together real-life examples, both the good and bad. There will be interactive sessions and templates to examine. The materials will include a comprehensive slide deck, a workbook, and numerous examples of PPP contacts. Delegates will be encouraged to share any professional experience with PPP, and help will be given to resolve any ongoing projects where required. It will provide real-life practical experiences in Commercial Contracts and share their knowledge of best practice solutions to some of the problems that frequently arise with PPP contracts.

The Attendees

This training course targets government contract awarding departments, NGO employees looking to operate when PPP contracts are in place or are proposed, and any contacting organisations seeking clarity on the programme.

Likewise, it will be valuable to the professionals but not limited to the following:

• Legal Executives
• Procurement Managers
• Finance Professionals
• Project & Contract managers
• Specialist PPP Unit Staff in Government

Daily Discussion

DAY ONE: PPP AND ITS PLACE IN PROJECT FINANCE

• The Numerous Models of State Project Finance
• Rationed Global Capital and making Project Attractive
• Can PPP supplant the privatisation model?
• Social vs. Economic Benefit: Who funds what?
• What does a “Good” PPP model look like?
• What does a “Poor” PPP model look like?

DAY TWO: THE STAKEHOLDERS PLACE IN DRAFTING A CONTRACT

• Identifying the relevant Stakeholders: Internal and External
• What makes a PPP “bankable”?
• Stakeholder Needs: Differing Perspectives and Responsibilities
• Managing Communication with All Stakeholders
• Tools to Prioritise Workflow
• Ensuring stakeholders' needs are met and they stay onside

DAY THREE: ESSENTIALS FOR EVERY WELL-DRAFTED PPP CONTRACT

• The 18 subject matters which MUST be addressed
• The Procurement Rules that need to be followed
• The Fundamental rules of Commercial Contracts which apply
• Legal language for Non-Lawyers
• Using SLAs to avoid conflict and resolve disputes amicably

DAY FOUR: KEEPING YOUR PPP ON TRACK

• Recognising the inevitability of change
• Managing the process of Change/Variation
• The four ways in which Change Management can fail
• Early warning signs when things are not working
• Termination for Cause or Convenience
• Warranties, Representations, and Compensation
• Going to Court or Arbitration

DAY FIVE: CONDUCTING SUCCESSFUL NEGOTIATIONS

• The Need for Clarity
• Planning your approach in detail
• Knowing your red lines and concessions in advance
• Dealing with Corruption Issues
• Overcoming “No”
• Best Practice Tips: How to negotiate in the room?
• Understanding Shifting Risks, Options, and Priorities
• Negotiating Collaboratively, not Competitively