Does practice make perfect? A longitudinal analysis of the contractual governance of Ireland’s first Public-Private Partnership

Original study by Cian O’Shea, Donal Palcic and Eoin Reeves

Studies of the performance of PPPs typically assess performance in terms of utilitarian goals such as ‘on time’, ‘within budget’ and value for money.  However, as PPP projects typically involve long-term (often 20-30 years) contracts, a complete assessment of PPP performance requires a longer-term perspective that relies on a broader conceptualisation of performance. 

This paper adopts such an approach by examining the practice of long-term PPP contracting and asks if long-term contracts and private involvement lead to better cooperation and relations between public and private partners.  In other words, it examines if a PPP exhibits the characteristics of relational contracting whereby parties to the contract seek to build and continue long-term relationships and avoid conflict.  The analysis adopts the perspective that relational contracting may contribute to dynamic efficiency by improving the exchange of information, responsiveness to external challenges and the encouragement of innovation over time.