Objectives to be Achieved During the Negotiation Process

There are a number of objectives to be achieved during the negotiation process. These objectives include:

• identifying responsibilities of the local government and the private partner

• setting out the legal liabilities of the local government and private partner

• identifying clear standards of performance, goods to be delivered, services performed and delivery or performance dates

• ensuring control of costs, quality, service, deadlines, safety, community relations, compliance and operating/maintenance requirements

• balancing risks and benefits between the local government and the private partner (e.g., financial savings, return on investment, increased service)

• contingency arrangements if the private partner is dissolved, bankrupt, contravenes the agreement or agreements, or if the partnership is dissolved

• identifying mechanisms for monitoring performance, quality of service and other local government objectives

• establishing conflict resolution mechanisms

• providing a buy-back clause to permit the local government to reacquire the service or facility