Recommended for Publication SCL(NZ) Construction Law Essay Prize Competition
Public Private Partnerships (PPPs) are an increasingly prominent form of construction procurement in Aotearoa New Zealand. This essay argues that PPPs constitute a distinctive and potentially valuable procurement model, capable of delivering benefits where used appropriately. However, their long-term contractual nature, structural complexity and demonstrated propensity for disputes limit their general suitability. PPPs should therefore not be adopted as a default procurement model, their use should be confined to projects in which their particular features confer a clear, project-specific advantage. This essay contends that five additional considerations require closer attention: guidance over the use of Early Contractor Involvement (ECI), consideration of alternative financing structures, guidance about PPPs at a local authority level, the limitations of the ‘value for money test’ and the need for enhanced transparency. Addressing these issues will be critical to ensure that the use of PPPs is not merely expanded, but that PPPs are used in a controlled and appropriate way.