A quantitative analysis all the risks and costs associated with PPPs must be adopted for better management of contingent liabilities arising from a project. It is always useful to conduct a cost-benefit analysis/economic analysis for the project before taking up the project. A value for proposition analysis may be carried out to ensure that PPP is a better mode of project implementation when compared to the conventional mode of procurement. Economic analysis and value for proposition analysis are to be carried out prior to the procurement process. In addition to the above, the public entity could also attempt to quantify the costs/risks and contingent liabilities associated with the project. Countries like Chile have already developed standard spread sheet models to quantify such risks and understand their probability distribution. These models are updated with real time data on projects across sectors to estimate the cost of possible guarantees, to set guarantee fees and report information on the costs and risks of guarantees.