What is the public-private collaboration contract?

Ok, let's take the suit and tie to this text:

The famous public-private collaboration contract-or PPP for friends-is basically a formula for the public sector and private companies to give their hands and take forward projects that, in theory, benefit us all. The typical: infrastructure constructions, public services, innovative things, technology ... come on, the classics.

How is this roll from normal contracts? Well here the risks and the brown (and also the profits, of course) are distributed between them. The private one puts pasta and technical knowledge, while the administration takes care that everything is legal, beautiful and safe to invest. Of course, in Spain all this move is tied and well tied with Law 9/2017, which basically puts European guidelines on public contracts in our system. You know, a lot of regulations, a lot of paper.

For private companies, getting into a PPP can be a chollazo ... or a eggplant. You can catch fat projects, yes, but beware of the risks: from changes in the laws to which the administration takes to pay (you see you, what a novelty), or that bronchs arise in the middle of the project.

The pasta, here, is what it commands. Before launching into the pool, the company should look with magnifying glass if the matter is profitable or if it will end up in red numbers. Very important to negotiate the terms with the administration: who pays, when, how much, and to whom the browns have to eat if something goes wrong.

Does this work? Yes, we are not going to fool ourselves. The PPPs have served to improve public services, put Turbo to innovation and attract private investment to sectors in which only the usual ones were. But, of course, they are complicated contracts, with a lot of small print. If you have no idea of the legislation or lack experience managing large projects, you can end up dancing with the ugliest.

If a company wants to catch one of these contracts, you have to be well advised, have experience, and not to be closed in the negotiations. And, above all, talk clearly with the administration throughout the process, because if not, the messes come.

In short, public-private collaboration contracts are a way of gathering the best (and worst) of both worlds to move forward public projects. They are not easy, but for those who know how to move and want to play it, they can be a real gold mine ... or a headache, it depends on how you look at it.