IDEAS home Printed from https://ideas.repec.org/a/kap/policy/v49y2016i3d10.1007_s11077-015-9240-y.html
   My bibliography  Save this article

Learning to contract in public–private partnerships for road infrastructure: recent experiences in Belgium

Author

Listed:
  • Martijn Hurk

    (University of Antwerp)

Abstract

Public–private partnerships (PPPs) are known as challenging contractual endeavors to public sector managers, and governments are developing standard contracts in order to ease the contracting process toward PPP deals. This study examines the learning process governments go through while managing the procurement trajectories of PPPs over time and revising the model contract they use, thereby gradually moving toward the formulation of a standard contract. It presents a case study of four consecutive road infrastructure projects in Belgium that looks into the contractual changes that were made over time and explains the reasons behind those changes. The results indicate a learning process that is characterized by an open attitude to learning of public sector actors, and a leading role of private sector actors—primarily financiers—in proposing or even requiring change. Contrary to theory-based expectations, the government continuously tested whether its model contract was in line with market practice, rather than increasingly limiting the room for negotiation as it gained experience.

Suggested Citation

  • Martijn Hurk, 2016. "Learning to contract in public–private partnerships for road infrastructure: recent experiences in Belgium," Policy Sciences, Springer;Society of Policy Sciences, vol. 49(3), pages 309-333, September.
  • Handle: RePEc:kap:policy:v:49:y:2016:i:3:d:10.1007_s11077-015-9240-y
    DOI: 10.1007/s11077-015-9240-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11077-015-9240-y
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11077-015-9240-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fabrice Lumineau & Marc Fréchet & Dominique Puthod, 2011. "An organizational learning perspective of the contracting process," Post-Print hal-00962458, HAL.
    2. Kyle J. Mayer & Nicholas S. Argyres, 2004. "Learning to Contract: Evidence from the Personal Computer Industry," Organization Science, INFORMS, vol. 15(4), pages 394-410, August.
    3. Darrin Grimsey & Mervyn K. Lewis, 2004. "Public Private Partnerships," Books, Edward Elgar Publishing, number 2438.
    4. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    5. Graeme A. Hodge & Carsten Greve & Anthony E. Boardman (ed.), 2010. "International Handbook on Public–Private Partnerships," Books, Edward Elgar Publishing, number 13451.
    6. Lumineau, Fabrice & Frechet, Marc & Puthod, Dominique, 2011. "An organizational learning perspective on contract design," MPRA Paper 38360, University Library of Munich, Germany.
    7. Andreas Hartmann & Andrew Davies & Lars Frederiksen, 2010. "Learning to deliver service-enhanced public infrastructure: balancing contractual and relational capabilities," Construction Management and Economics, Taylor & Francis Journals, vol. 28(11), pages 1165-1175.
    8. Menno Van Der Veen & Willem K. Korthals Altes, 2012. "Contracts and Learning in Complex Urban Projects," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 36(5), pages 1053-1075, September.
    9. Bart S. Vanneste & Phanish Puranam, 2010. "Repeated Interactions and Contractual Detail: Identifying the Learning Effect," Organization Science, INFORMS, vol. 21(1), pages 186-201, February.
    10. Philip Ashton & Marc Doussard & Rachel Weber, 2012. "The Financial Engineering of Infrastructure Privatization," Journal of the American Planning Association, Taylor & Francis Journals, vol. 78(3), pages 300-312.
    11. Michael D. Ryall & Rachelle C. Sampson, 2009. "Formal Contracts in the Presence of Relational Enforcement Mechanisms: Evidence from Technology Development Projects," Management Science, INFORMS, vol. 55(6), pages 906-925, June.
    12. Fabrice Lumineau & Marc Fréchet & Dominique Puthod, 2011. "An organizational learning perspective of the contracting process," Post-Print halshs-01019320, HAL.
    13. Petsoulas, Christina & Allen, Pauline & Hughes, David & Vincent-Jones, Peter & Roberts, Jennifer, 2011. "The use of standard contracts in the English National Health Service: A case study analysis," Social Science & Medicine, Elsevier, vol. 73(2), pages 185-192, July.
    14. Martijn Van Den Hurk & Koen Verhoest, 2016. "The challenge of using standard contracts in public-private partnerships," Public Management Review, Taylor & Francis Journals, vol. 18(2), pages 278-299, February.
    15. Michael Pollitt, 2005. "Learning from UK Private Finance Initiative experience," Chapters, in: Graeme A. Hodge & Carsten Greve (ed.), The Challenge of Public–Private Partnerships, chapter 11, Edward Elgar Publishing.
    16. Yescombe, E. R. & Yescombe, E. R., 2007. "Public-Private Partnerships," Elsevier Monographs, Elsevier, edition 1, number 9780750680547.
    17. Wright, Christopher & Sturdy, Andrew & Wylie, Nick, 2012. "Management innovation through standardization: Consultants as standardizers of organizational practice," Research Policy, Elsevier, vol. 41(3), pages 652-662.
    18. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    19. Nicholas S. Argyres & Janet Bercovitz & Kyle J. Mayer, 2007. "Complementarity and Evolution of Contractual Provisions: An Empirical Study of IT Services Contracts," Organization Science, INFORMS, vol. 18(1), pages 3-19, February.
    20. Morag I. Torrance, 2008. "Forging Glocal Governance? Urban Infrastructures as Networked Financial Products," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 32(1), pages 1-21, March.
    21. Africa Ariño & Jeffrey J. Reuer & Kyle J. Mayer & Juan Jané, 2014. "Contracts, Negotiation, and Learning: An Examination of Termination Provisions," Journal of Management Studies, Wiley Blackwell, vol. 51(3), pages 379-405, May.
    22. Vincent-Jones, Peter, 2006. "The New Public Contracting: Regulation, Responsiveness, Relationality," OUP Catalogue, Oxford University Press, number 9780199291274.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Wei & Zhang, Xinxin & Wu, Guangdong, 2021. "The network governance of urban renewal: A comparative analysis of two cities in China," Land Use Policy, Elsevier, vol. 106(C).
    2. Martijn van den Hurk & Tuna Tasan-Kok, 2020. "Contractual arrangements and entrepreneurial governance: Flexibility and leeway in urban regeneration projects," Urban Studies, Urban Studies Journal Limited, vol. 57(16), pages 3217-3235, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fang, F., 2019. "When performance shortfall arises, contract or trust? A multi-method study of the impact of contractual and relational governances on performance in public – private partnerships," Other publications TiSEM 473840ee-6945-4a93-9326-5, Tilburg University, School of Economics and Management.
    2. van der Valk, Wendy & Lumineau, Fabrice & Wang, Wenqian, 2019. "Research on contracting in supply chain management and related disciplines: A synthesis of scholarly recommendations and a discussion of future opportunities," Other publications TiSEM 55901a88-7fc5-4808-a47a-e, Tilburg University, School of Economics and Management.
    3. Wang, Yu & Chen, Yongqiang & Wang, Wenqian & Tang, Yinqiu, 2019. "Differentiating two types of learning in contract design: Evidence from the construction industry," Scandinavian Journal of Management, Elsevier, vol. 35(1), pages 1-11.
    4. Africa Ariño & Jeffrey J. Reuer & Kyle J. Mayer & Juan Jané, 2014. "Contracts, Negotiation, and Learning: An Examination of Termination Provisions," Journal of Management Studies, Wiley Blackwell, vol. 51(3), pages 379-405, May.
    5. Henri C. Dekker & Alexandra Van den Abbeele, 2010. "Organizational Learning and Interfirm Control: The Effects of Partner Search and Prior Exchange Experiences," Organization Science, INFORMS, vol. 21(6), pages 1233-1250, December.
    6. Shen, Lu & Su, Chenting & Zheng, Xu & Zhuang, Guijun, 2019. "Contract design capability as a trust enabler in the pre-formation phase of interfirm relationships," Journal of Business Research, Elsevier, vol. 95(C), pages 103-115.
    7. Reuer, Jeffrey & Devarakonda, S.V., 2015. "Mechanisms of hybrid governance : Administrative committees in non-equity alliances," Other publications TiSEM 063d9ccc-59c8-4e76-a77d-8, Tilburg University, School of Economics and Management.
    8. Alex Scott & Christopher W. Craighead & Chris Parker, 2020. "Now You See It, Now You Don't: Explicit Contract Benefits In Extralegal Exchanges," Production and Operations Management, Production and Operations Management Society, vol. 29(6), pages 1467-1486, June.
    9. Vanesa Solís-Rodríguez & Manuel González-Díaz, 2019. "Prior interactions and contractual completeness in Spanish franchising," Small Business Economics, Springer, vol. 53(3), pages 795-812, October.
    10. Martijn van den Hurk & Tuna Tasan-Kok, 2020. "Contractual arrangements and entrepreneurial governance: Flexibility and leeway in urban regeneration projects," Urban Studies, Urban Studies Journal Limited, vol. 57(16), pages 3217-3235, December.
    11. Martinez-Noya, Andrea & Narula, Rajneesh, 2018. "What more can we learn from R&D alliances? : A review and research agenda," MERIT Working Papers 2018-022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Bart S. Vanneste & Phanish Puranam, 2010. "Repeated Interactions and Contractual Detail: Identifying the Learning Effect," Organization Science, INFORMS, vol. 21(1), pages 186-201, February.
    13. Kristina Vaarst Andersen & Karin Beukel & Beverly B. Tyler, 2021. "Learning to Litigate: the Relationship Between Past Litigation Experience and Litigation Outcomes in the Chinese Intellectual Property System," Schmalenbach Journal of Business Research, Springer, vol. 73(3), pages 479-500, December.
    14. Bart S. Vanneste & Douglas H. Frank, 2014. "Forgiveness in Vertical Relationships: Incentive and Termination Effects," Organization Science, INFORMS, vol. 25(6), pages 1807-1822, December.
    15. Liwen Wang, 2023. "The interplay of contracts and trust: untangling between- and within-dyad effects," Post-Print hal-03944358, HAL.
    16. Michael D. Ryall & Rachelle C. Sampson, 2017. "Contract Structure for Joint Production: Risk and Ambiguity Under Compensatory Damages," Management Science, INFORMS, vol. 63(4), pages 1232-1253, April.
    17. Vanesa Solís-Rodríguez & Manuel González-Díaz, 2017. "Differences in contract design between successful and less successful franchises," European Journal of Law and Economics, Springer, vol. 44(3), pages 483-502, December.
    18. Nicholas S. Argyres & Teppo Felin & Nicolai Foss & Todd Zenger, 2012. "Organizational Economics of Capability and Heterogeneity," Organization Science, INFORMS, vol. 23(5), pages 1213-1226, October.
    19. Sarmento, Joaquim Miranda & Renneboog, Luc, 2021. "Renegotiating public-private partnerships," Journal of Multinational Financial Management, Elsevier, vol. 59(C).
    20. van den Hurk, Martijn & Verhoest, Koen, 2017. "On the fast track? Using standard contracts in public–private partnerships for sports facilities: A case study," Sport Management Review, Elsevier, vol. 20(2), pages 226-239.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:policy:v:49:y:2016:i:3:d:10.1007_s11077-015-9240-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.