4.2  Dispute resolution mechanisms

Contract data was found for 115 projects in our sample, and of those approximately 68% included a sequence of dispute resolution mechanisms. The prevalence of each individual mechanism is shown below in Figure 11, domestic arbitration is the clear standout, appearing in over half of contracts, suggesting that it is a common feature across the world.

Dispute Resolution Boards were present in slightly over 20% of contracts. Places such as India, Brazil and Europe tended to have this mechanism slightly more often than not, whereas it was far less common in North America and the Middle East. The breakdown by sector was similar to the overall breakdown.

A defined process to resolve disputes by senior management also appeared in approximately 27% of contracts. There were clear discrepancies between regions for this figure, with no projects in Latin America including this mechanism, while the majority of projects in North America did include it.

Mediation was present in 32% of the PPP contracts, and while it is slightly more common in India and less common in Latin America, there are no other particular trends. International arbitration was less common than expected, which may be a limitation in our data.

Figure 11: Prevalence of dispute resolution mechanisms explicitly defined in PPP contracts, based on 115 projects