Risk Research On Early Contract Termination Of PPP Project

With the successive introduction of relevant policies and systems in China,PPP projects are increasingly being adopted by infrastructure and public services.However,due to the long contract period of PPP projects and the large number of stakeholders,the government and the private sector are faced with numerous risk events during the operation of the project.When there is a contradiction and conflict between the two parties,it cannot be resolved through the contract and the negotiation fails,the contract is likely to be forced to terminate early.The termination of the contract caused significant losses to the government and the private sector and the risk of failing to achieve social public benefit goals.Therefore,in-depth study on the risk of early contract termination of PPP project,and improve the risk management awareness of contract subjects in PPP projects is an urgent problem to be solved to reduce the contract failure rate.Based on the research of PPP model and related literatures,this paper firstly analyzes the status quo of PPP project contract termination based on questionnaire survey and practice cases,summarizes the basic situation of the main reasons,circumstances and results,then the definition and manifestation of the early contract termination of the PPP project are summarized.Secondly,according to the PPP related literature,termination cases and current situation analysis results,a risk factor framework is established to comprehensively identify the risk factors for early contract termination of PPP project.Furthermore,based on data collection and consistency analysis,the direct influence relationship between the risk factors of PPP project contract termination is determined,and the risk relationship adjacency matrix is formed.Also,the risk network is constructed by using social network analysis method,and the risk assessment model for the early contract termination of the PPP project isconstructed by using the overall network analysis and individual network analysis,then key risk factors and risk relationships that play an important role in the network are determined.Finally,combined with the interrelated relationship between risk factors,the corresponding countermeasures are proposed for the key risk factors and risk relationships,and the overall network density,clustering coefficient and intermediate centrality are used to detect the risk management effect.This paper studies the risk of early contract termination of PPP project from the perspective of factor correlation.and considers risk factors as related points,considering the impact of risk relationship on early termination of contracts,it provides a reference for risk management.With the control of the communication effect between risk factors,the close relationship between risk factors is reduced,the risk level of PPP project operation is reduced as much as possible,and the PPP contract performance is more efficient.