MANAGING THE RELATIONAL CHARACTER OF PUBLIC-PRIVATE PARTNERSHIP CONTRACTS Cover Image

УПРАВЉАЊЕ РЕЛАЦИОНИМ КАРАКТЕРОМ УГОВОРА ЈАВНОПРИВАТНОМ ПАРТНЕРСТВУ
MANAGING THE RELATIONAL CHARACTER OF PUBLIC-PRIVATE PARTNERSHIP CONTRACTS

Author(s): Predrag Cvetković
Subject(s): Law on Economics
Published by: Правни факултет Универзитета у Нишу
Keywords: public-private partnership; relational contracts; opportunism of contracting parties; "hold-up" problem; cooperation; solidarity

Summary/Abstract: A public-private partnership contract has the character of a relational contract. Relational contracts are incomplete agreements governing transactions where the contracting parties have mutually agreed that it is impossible or economically ‹‡ˆϔ‹…‹‡‘…‘ƒ…ƒŽŽ›†‡ϔ‹‡‡šƒ‡’‘••‹„Ž‡†‹ˆϔ‹…Ž‹‡•ƒ†…‘‹‰‡…‹‡•‹ Š‡…‘ƒ…‹’Ž‡‡ƒ‹‘ǡ‘Š‡†‹ˆϔ‹…Ž‹‡•ƒ†…‘‹‰‡…‹‡•†‡Ž›‹‰Š‡ ex post control of contract performance by a third entity (court or arbitration). Considering the methodology of managing relational contracts, it is essential that the theory of relational contracts does not advocate for the establishment of rela- ‹‘ƒŽ…‘ƒ…•ƒ•ƒ•‡’ƒƒ‡…ƒ‡‰‘›‘ˆ…‘ƒ…•ǡ™‹Š•’‡…‹ϔ‹…ƒŽŽ›†‡•‹‰ƒ‡† …‘ƒ…ƒŽ‹•‡•ǤŠ‹•Š‡‘›†‡ϔ‹‡•Š‡‡Žƒ‹‘ƒŽ…‘ƒ…ƒ•ƒ…ƒ‡‰‘› which legitimizes «the relational mode» of a particular contract. The methodology of relational contracts is important for contracts on public-private partnership as it ensures that the contractual relationship is aligned with the changes in the immediate environment where the PPP contract operates. The aforementioned ali- ‰‡Šƒ•™‘ƒ•’‡…•ǤŠ‡ϔ‹•‘‡‹•Š‡‡šƒ‡ƒ•’‡…‘ˆŠ‡ƒŽ‹‰‡™Š‹…Š is primarily aimed at preventing the detrimental effect of such alignment to the public partner’s interests. Therefore, the intent to prevent such an effect shall be ƒ‡‹‘ƒ……‘™Š‡†‡ϔ‹‹‰Š‡…‹‡‹ƒˆ‘Š‡•‡Ž‡…‹‘‘ˆŠ‡‘•ˆƒ‘ƒ- ble private partner and the best offer. At the same time, it is essential to establish ‡‹ϔ‹ƒ„Ž‡•ƒ†ƒ†•ˆ‘‡ƒ•‹‰Š‡’‹ƒ‡’ƒ‡’‡ˆ‘ƒ…‡‹Š‡’Šƒ•‡ of contract implementation. For this goal to be achieved, it is crucial to specify the subject matter of the private partner’s obligations, to establish the priority rank ‘ˆ’‘Œ‡…‘„Œ‡…‹‡•ǡ‘‡Žƒ„‘ƒ‡‘Š‡•’‡…‹ϔ‹…‡‹‡‡•‰‘‡‹‰Š‡ eligibility of private partners to participate in the bidding process, to specify the «value for money» which the public partner will obtain by the implementation of the contract, and to ensure an adequate structural framework of the PPP contract. The second one is the ex post aspect of alignment which involves alignment of the contract to the contextual changes in the contract environment during the contract period. In this regard, the key principles are the principles of solidarity and cooperation.

  • Issue Year: LIV/2015
  • Issue No: 69
  • Page Range: 57-72
  • Page Count: 16
  • Language: Serbian