Government Contracts
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Real Estate Developer Guide
A guide for property developers engaging with government contracts and public-private partnerships (PPP).
1. Government vs private contracts
- Different legal frameworks
- Stricter approval procedures
- Payment mechanisms and cash flow
- Disputes before administrative courts
2. PPP & hybrid project obligations
- BOT / DBFO model requirements
- Risk sharing between sectors
- Long-term operating obligations
- Financing structure and sureties
3. Working with multiple government entities
- Coordinating approvals across entities
- Managing the permit calendar
- Engaging municipalities and regulators
- Parallel correspondence management
4. Commercial risk management
- Risk allocation across contractor & consultant deals
- Inflation and material price hedging
- Tracking regulatory risk
- Building an integrated risk register
5. Performance guarantees & insurance
- Performance bond, size and wording
- Contractor All Risks (CAR/EAR)
- Third-party liability insurance
- Decennial / Latent Defects insurance
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