Question

From the article "Public-Private Partnerships and Infrastructure Resilience", does increased involvement of private sector partners introduce any potential security concerns that do not exist in more traditional contract models? Include an example.

Answer 1

Answer: Increase the involvement of private sector partners gives a kind of security concerns while contracting. For examples,

For payment, public-private partnerships can get an incentive if complete the work on time and they give pay over a long period of time as the services are delivered. Payment are base on usage and availabilities. In the traditional contracts, the payment is done by the public sector, there is a need to take the risk for the cost and late delivery of the services.

Private facilitators come up with the flexibility of come up with new material and new innovative infrastructure delivery. But in a traditional contract, there is no flexibility, the decision is control by the public sector. This gives security to do work with good innovative and good ideas.

Design builder contract give the private sector responsible for fo both the design and build or construction facilities for long term management of facilities and long term operation. This gives a potential security due to partner with private sectior.