Public-Private Partnership: Analysis of the Contractual Relationship in a Legal and Economic Perspective

Christian Bjerrum Hansen

Student thesis: Master thesis


Public-Private Partnerships (PPP) are a way of benefitting from the private sector both financially and via knowledge sharing. Strategies from the Danish governments have been implemented to increase the popularity of such collaborations and exploit their benefits.
The contractual provisions regulating the parties within the PPP are primarily subject to national law in compliance with relevant Community rules within the EU. This thesis focuses on Danish National Law, and how the contractual framework can effectively support the collaboration. National Law and Community rules may affect the provision supporting cooperation between the parties, and thereby have an impact on the contractual relationships with long-term consequences. Cooperation between the public and private sectors can positively contribute to economic benefits by providing value for money. Thus it is interesting to analyse how the contractual framework can support these benefits via an effective contract and joint utility.
The complexity of PPPs makes the objectives of collaboration even more difficult.
The thesis aims to give a perspective of the legal framework that regulates the PPP-contract, as parties are limited in terms of negotiating the contractual clauses and drafting the contract in collaboration. Challenges are often lack of legal clarity, which affects the cooperation and the possibilities of joint utility. Thus, constraints to facilitate an economic effective contract can be a key issue. Governments are developing initiatives to simplify the use of public procurement and optimize the legislative framework to fit PPPs. Implementation of the new public procurement law in Denmark is an example of this.
The success of a PPP relies on a healthy contractual framework of the project, by optimizing the provisions and elements that surround the PPP and cooperation within. This way the optimal conditions for joint interests can by strengthened and result in better economic utility. This thesis will analyse the possibilities of an optimal cooperation. Thus, it focuses on the contractual relationship, and how the contract can establish an efficient collaboration between the parties via a clear and coordinated set of rules.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
Publication date2016
Number of pages83