Major Causes of Claims and Disputes on Transportation Public–Private Partnership Projects
Publication: Construction Research Congress 2022
ABSTRACT
An increasing trend is observed in transportation agencies’ use of the Public–Private Partnership (P3) delivery method, which is attributed to its many cited advantages, such as private financing and transfer of operations and maintenance risks to the concessionaire. As more P3 projects are being implemented nationwide, the question is posed on how effective the contracts have been drafted to account for such risks. The objective of this paper is, thus, to investigate how P3 contracts are drafted to allocate risks between the owner and concessionaire, identify the major causes of claims and disputes on these projects, and accordingly provide recommendations on how contracts could be effectively drafted to mitigate such risks. Results show that when owners take responsibility of the significant projects’ risks, such as utility adjustments and third-party approvals, projects are likely to experience fewer claims than other projects where the owner passes all the risks to the concessionaire.
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Construction Research Congress 2022
Pages: 79 - 88
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Published online: Mar 7, 2022
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