Over the life of a typical PPP contract-10 to 30 years-things will inevitably happen that could not have been predicted when the contract was signed. It is also likely that the parties will get into a dispute over how the contract should be interpreted, or whether both parties have been performing as agreed. In some cases, these disputes may result in early termination of the contract. These risks cannot be avoided-but they can be managed.
Some general guidance material that is available on dealing with change in PPPs is:
• The United Kingdom's National Audit Office publication on managing the PFI relationship [#250], which emphasizes the need for: public authorities to address the question of contract management early in the project preparation; appropriate skills in the public authority; and highlights the importance of an open and cooperative attitude
• A shorter overview on similar topics is provided in Quick's article on managing PPP contracts [#211] which also adds an Australian perspective
• UNESCAP's PPP guidebook [#261, Chapter 6] offers an overview of contract management intended for developing countries. It focuses on institutional arrangements for contract management, and mechanisms for dispute resolution.
These materials do not provide a great deal of detailed guidance of the sort that would benefit government officials in developing countries. Therefore, the approach taken in this section is to also provide examples of where these issues have come up, and ways in which they have been handled, from which practitioners can draw lessons. These 'change' situations can usefully be discussed in four categories: planned reviews and adjustments; renegotiations; disputes; and contract expiry or termination.