Comparative Study on Construction Contracts
PPP is used for the development of wide range of infrastructure projects like road, rail, irrigation, prison, and hospital, but PMMR and FBV cover only road projects. All these contracts are long-term contracts based on the required output. Payment with FBV and PMMR is through public fund in which investment in PPP is through private sector or private and public sectors together. PMMR and PPP are in implication worldwide, but FBV is in implementation only in Germany.
PPP covers contraction/renovation, operation, management, and maintenance. PMMR covers renovation/maintenance and management while FBV covers renovation/construction, maintenance, and management of the project.
KeywordsPublic Fund Functional Requirement Contracting Method Road Project Construction Contract
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