SEMINAR - I CONTRACT RISK MANAGEMENT IN PUBLIC PRIVATE PARTNERSHIP FOR HIGHWAY PROJECT

Submitted by: (Darshan Bhayani CP 0410)

Guided By: (Mr. Sanjiv Kothari , V.P Commercial in Contracts, Kalpataru Power)

M. Tech. Programme in Construction & Project Management CEPT University Ahmedabad 380009

1.1 INTRODUCTION:Publicprivate partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. These schemes are sometimes referred to as PPP, P3 or P3. PPP involves a contract between a public-sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project. In some types of PPP, the cost of using the service is borne exclusively by the users of the service and not by the taxpayer. In other types (notably the private finance initiative), capital investment is made by the private sector on the strength of a contract with government to provide agreed services and the cost of providing the service is borne wholly or in part by the government. Government contributions to a PPP may also be in kind (notably the transfer of existing assets). In projects that are aimed at creating public goods like in the infrastructure sector, the government may provide a capital subsidy in the form of a one-time grant, so as to make it more attractive to the private investors. Under Public Private Partnership arrangements, private sector contractors become long term providers of services rather than simply upfront asset builders, combining the responsibilities of designing, building, operating, maintaining and possibly assets in order to deliver the services needed by the public sector. As a result, central government agencies become increasingly involved as regulators and focus resources on service planning, performance monitoring and contract enforcement rather than on the direct management and delivery of services.

1.2 Need for Study:If we see the current scenario almost all big project deals with PPP project so by considering individual projects as suitable candidates for PPP approach, Local Authorities and their Consultants should be aware of the potential benefits. Compared with traditional design , suitable projects offer the potential of achieving: More buildable designs Innovative solutions to design issues Faster solutions to design issues Better value for money, in particular over the life cycle of the works Better risk allocation Greater certainty in construction and operational cost estimation and Improvement guarantee of enhanced operational performance.

1.3 Objectives:i. ii. Framework for contract risk management in highway project. Various Risk involve in PPP types of contracts.

1.4 Scope of Study:i. Scope of work is restricted to highway projects.

1.5 Methodology:a) LITERATURE REVIEW The literature for the past 15 years by the eminent researchers in the area of Public Private Partnership will be reviewed from the published research papers of journals from ASCE, JCEM, codes of practice and standard book to find out the research gap. b) DATA COLLECTION Primary data will be collected from the site. c) DATA ANALYSIS Based on the data collected, data analysis will be done to develop the PPP contracts. d) CONCLUSION The final Conclusion will be drawn on the basis of analysis done on primary data collected as well as on the case study. e) SCOPE FOR FUTURE REASEARCH Future research will be based on analysis of primary data collection and can work on government sector.

1.6 Research Plan:Literature Review Data Collection Data Analysis Scope of Future Study

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