About the Workshop
Contracts that are used for PPP projects are found wanting in at least one way: an absence of collaboration. Collaboration is more effective than predicting contingencies and it is vital because the best way to address unanticipated problems is to have a problem-solving process ready and agreed to before problems arise. It is well known that most people respond well to kind reciprocity and the reverse, to the opposite. Parties are conflicted because while they are governed by an autonomous and bilaterally dependent incentive structure, they have skin in the game that must be protected. In the absence of protection, they run the risk of losing the cooperation of the counterparty that protects their specialized assets by restraining their guile.
This workshop is about rewriting the standard bidding documents, starting with its model contract by comparing and contrasting the languages of the SBD with TCE for the purpose of enriching the two principal parties’ understanding of the contractual interface between them. The objective is to describe to practitioners a work-in-progress that has possibilities to bring big improvements to the infrastructure industry, to highlight the potential areas of benefits and costs, and to get feedback on how participants think the industry could collaborate in working out the details and a plan for large scale testing and evaluation. Rewriting is done with the lens of transaction cost economics.
Contract modifications will be tentative but consistent with the standard bidding documents (SBD) of the International Federation of Consulting Engineers (Fédération Internationale des Ingénieurs Conseils, or FIDIC) and of the World Bank.
Who will benefit
- Infrastructure planners and designers
- Bid document writers
- Project negotiators
- Project managers
- Project consultants
- Project monitors
"Harmonizing the contractual interface that joins the parties, thereby to effect adaptability and promote continuity, becomes the source of real economic value."
— Oliver E. Williamson, Nobel 1985:30
Oliver E. Williamson — Nobel Laureate for Economics 2009 — describes Neil Boyle's workshops on Transaction Cost Economics (TCE) and Comparative Contracting as:
"Promising, ambitious, and worthy” and observes that "more extensive knowledge and use of a comparative contractual framework in government is sorely needed. Good luck in your efforts to put this across."