Work

Legal Allocation of Design and Construction Risks in Public–Private Partnership Projects: A Comparative Study of the United Arab Emirates, Egypt, and France

Year: 2026

Type: article

Abstract: Background: Public-private partnership (PPP) projects are a principal instrument for delivering infrastructure and public facilities. They combine the private sector's financing, technical expertise, and operational capabilities with the public entity's responsibility for ensuring the continuity of public services and the realization of the public interest. The success of these projects depends largely on the precise legal allocation of design and construction risks. Defects may arise from site data, technical requirements, or permits under the control of the public entity. They may also result from detailed design, construction methods, or the performance of subcontractors under the control of the private partner. This distinction assumes particular importance because the effects of a defect may extend from the construction phase to the operation and maintenance phases, leading to delays, increased costs, diminished service levels, and the emergence of claims and disputes. Methods: The study adopts a comparative analytical approach to design and construction risks in PPP projects. It analyzes legislation, judicial decisions, and scholarly opinions in the United Arab Emirates, Egypt, and France. Results: The comparison demonstrated a common rule across the United Arab Emirates, Egypt, and France: risk is linked to the party best equipped to foresee and control it, and address its consequences, rather than simply to the party executing the physical works. The findings reveal that the public entity inherently bears the risks of information and decisions under its control. Notably, these include inaccurate site data or existing assets, delayed land handover or utility provision, permits and approvals within its jurisdiction, and modifications imposed on the project's scope or service levels. Conversely, the private partner bears the risks of detailed design, selection of technology, materials, and execution methods, subcontractor performance, and the achievement of agreed-upon quality, safety, and availability standards.

Source: F1000Research

DOI: 10.12688/f1000research.192125.1

Authors: Alaa Abouahmed, Nout Alahbabi, Alia Alraeesi

Institution: United Arab Emirates University

Language: English

Topic: Public-Private Partnership Projects

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $1,350