Agreements that involve the rights and obligations of a company`s shareholders and govern the relationships between them, increase the already complex task of acquiring large projects with considerable complexity. This complexity is carried over to a long-term supply period, which means that some of the additional profits can be eroded and purchase costs higher, including specific legal and financial advice costs, which are not required for public sector projects. If service costs are tailored to the needs and are not guaranteed by public authorities, the private sector is motivated to participate only in good projects. However, there is a risk of the ability to transfer some risks and decisions about the work of one project are not distorted for others. The risk of building and maintaining a new building is lower than the risk of renovating an old building. As a result, the bidder will have a bias on the new building. The parties at Spa and SSA are also different. According to Dewi, the parties to SPA are made up of sellers, buyers and target companies, while the parties to the SSA are composed solely of investors and target companies. So what makes the target company should also be a party within the GSB, which is in fact just the relationship between the seller and the buyer? The PPP is an alternative to the acquisition of equipment by the public sector using identity cards from taxes or public loans. In the context of public procurement (“design negotiations”), the government defines specifications and installation projects, seeks offers on the basis of these detailed projects and pays for the construction of such facilities by private contractors. The government should fund all construction costs, even if there are more costs. The operation and maintenance of the facility is fully insured by the Authority and the contractor is not responsible for the long-term performance of the facility at the end of the construction warranty period (usually relatively short).
The sales contract consists of 2 words, namely the purchase and the table contract is a summary of the various other financings of the public infrastructure, as mentioned above. The table above also shows that PPPs cover a wide spectrum ranging from the acquisition of public projects (by and for the government itself) to private sector projects as a whole (only by and for private parties). It should be emphasized that: The reason, said Dewi, because of the commitments that are made by the company Tareget as part of the acquisition process, so that the target company does not go from the promises that they are then preferably involved in the spa companies targeted as parties. When comparing P3 costs with public sector procurement costs, it is important to ensure that the business is run regularly, including operations and maintenance. Costs are grouped as part of the total cost of ppp contracts, so it is not reasonable to compare them only with the initial cost of capital for obtaining the facility. Lack of flexibility during the relatively short construction phase of a project has considerable benefits if public servants are often made to change their minds about what they want. But there are long-term problems that arise from the fact that public servants make a commitment that can extend the period from 20 to 30 years. A PPP contract is of a kind called an “incomplete contract” in legal theory. The treaty cannot offer all the possibilities that may exist in the future. The longer and more complex a contract is, the more likely it is to be, and it is therefore unlikely that public servants will relinquish or transfer responsibility for managing unforeseen circumstances.