Clear and open communication:

Clear (and open) communication is key to successful partner relations (National Audit Office 2009a: p.10; Hope 2012) as information can be used to influence and alter the planning, direction and development of projects (Karlsen 2002). A lack of communication or miscommunication flowing from decision-making can lead to misunderstanding between PPP partners. If left unresolved, this could result in communication break-downs which can then reduce the level of trust that partners have in each other's motives and thus impact on operational productivity. This applies just as much to communication failures that are intermittent as to those that may be continuous. Effective communication, on the other hand, can stimulate constructive exchanges of ideas, reduce the potential for misunderstanding and encourage trust (Cheng, Li and Love 2000). The importance of clear and open communication in PPP operations should not be underestimated. An anonymous respondent, surveyed as part of Arthur Andersen and Enterprise LSE's (2000: p.46) research to determine VfM outcomes in PFI, offers the following advice in support of effective communication:

"Establish frequent and open communications between the [public partner] and Supplier. It is extremely difficult for a legal contract to cover every issue that may arise. A strong partnership approach has to be supported by good communication where open and honest exchanges of information promote a healthy working relationship between the two parties".