Areas in which the public and private sectors’ expertise is relevant
A local authority does not have to do everything itself, just as a construction company doesn’t have to make the materials it uses to perform its tasks. The local authority’s role is not to perform work but to govern, i.e. to set up the administrative, legal and financial procedures needed for performing a specific service.
However, it is not assumed that infrastructure or a facility is better managed by the private sector, it has to be demonstrated. That is the purpose of the preliminary assessment. The partnership contract is part of this determination to exploit the synergies and complementary skills that exist between the public and private sectors by close cooperation and joint thinking on the targets to be achieved and the structures that have to be set in place.
The local authority’s role
- To make optimal use of budget possibilities: best solution for the lowest cost.
- To identify local development needs and prioritise the construction projects to meet those needs.
- To define the structure’s functions.
- To ensure that the various categories of users have access to the service.
- To define and adapt the pricing policy if one is required.
- To choose the most suitable management method after comparing all the costs and benefits of the various procedures.
- To establish efficient procedures for launching projects, executing contracts and minimising costs.
- To set up efficient reporting and control procedures.
- Maximum design efficiency, no additional costs.
- Economical and easy-to-maintain construction, in conjunction with design.
- Capacity for assuming the risks directly related to its skills (construction).
- Optimised commercial operation within the framework of the pricing contract.
- Customer relations management skills.
- Human resources management (flexibility, promotion opportunities).
- Ability to innovate and exploit solutions found by R&D.
- Financing of profit-generating part of the investment.
Areas in which the private sector’s expertise is relevant