Clear and Effective Contract Provisions

The final contract negotiated between the government and the public partner becomes the linchpin for how the asset will be built and operated as well as what happens if the private partner does not meet its obligations. While P3 contracts necessitate much more detailed performance specifications, they do not have to be overly prescriptive. The protection of the public interest can be maintained much easier if the contract clearly specifies outcomes, rather than details input specifications. In the case of operations like water treatment plants, the government agent can use water quality standards as easily quantifiable outcomes, but does not need to dictate how these standards are achieved.