Including the right terms in P3 contracts can help manage many of the concerns about protecting the public interest in public-private partnerships, according to a 2009 report issued by the Transportation Research Board's National Cooperative Highway Research Program. More recent P3 contracts are designed to address past issues with other P3s. Clauses allowing for contract termination or buyout are becoming more common in the states. States can also incorporate benchmarks for the private sector to meet in safety, maintenance and other standards. The state can then monitor the private sector entity to ensure these benchmarks are met. States can also examine appropriate use of revenues, environmental standards and fair labor practices.22
P3 contracts, or concession agreements, can be written to incorporate enforceable, detailed provisions to cover such things as:
• Who pays for future expansions, repairs and maintenance;
• How decisions on the scope and timing of those projects will be reached;
• Operation and maintenance performance standards required of the private toll company;
• How the contract can be fairly amended for both parties;
• How to deal with failures to comply with the agreement;
• Early termination;
• What protections will be provided to the company from state-funded competing routes; and
• Limits on toll rates or rate of return.23