Determinants of the Severity of Contract Enforcement in Chinese PPP Projects: From Public Sector’s Perspective

Table 2

The determinants of the severity of contract enforcement in PPP projects.

Determinants	Effects
The consequence of contract violations	If the concession contract violations by private sectors caused serious losses to public sectors or public interests, severe contract enforcement can be applied by public sectors to punish private sectors.
	If the concession contract violations by private sectors caused slight losses or no loss to public sectors or public interests, public sectors may apply lenient contract enforcement.
The intention of contract violations	If it was found out by public sectors that the concession contract violations by private sectors were intentional and opportunistic, public sectors must adopt severe contract enforcement.
	If the concession contract violations by private sectors were unintentional, public sectors may not adopt severe contract enforcement.
Private sectors’ remedies	If private sectors adopted appropriate remedial measures, public sectors can reduce the severity of contract enforcement.
	If the corrective attitudes and measures of private sectors were perfunctory, public sectors should increase the severity of contract enforcement.
Private sectors’ prior performance	If private sectors performed well and had no default in the past, public sectors may adopt low severity of contract enforcement and even support private sectors in solving problems.
	If private sectors had a poor track record and had defaulted frequently in the past, public sectors can severely punish private sectors, and even consider terminating concession contracts early.