Public private partnership arrangements often involve complex contractual arrangements between government and private providers. For this reason, it is important that the government project team includes legal expertise. Legal advisers play a key role in developing the risk allocation matrix, the contract management structure and in the preparation of project agreements. Particular areas where external legal advice may be appropriate (without duplicating financial advice) include:
• the structure of the transaction and advice on the procurement approach to be taken
• advice on contractual issues in relation to the request for expression of interest and request for binding bid documents
• the market sounding process
• drafting of the output specification
• drafting and finalisation of project agreements
• advice on how project agreements will achieve the allocation of risk and the commercial terms which have been agreed with the preferred proponent
• advice as required on more general issues such as taxation, property, planning and environmental law, competition law and intellectual property.