Abstract
<jats:title>Abstract</jats:title> <jats:p>This chapter introduces theories and concepts, such as New Public Management (NPM) and New Public Governance (NPG), that help to frame novel thinking about how public-private partnership (PPP) contractual arrangements can be structured to create public value. Insights from economic theories of contracting, game theory, behavioral psychology, and legal theory are integrated to inform readers’ understanding of how formal and informal aspects of the contractual relationships can be configured or cultivated to support the effective functioning and durability of PPPs. The concept of a “formal-relational contract” is introduced, along with guiding principles for developing the formal and informal structures that can scaffold and sustain the complex contractual relationships embodied in PPPs. Pivotal court cases are discussed to illuminate the legal viability of foundational norms, contract terms, and expectations in PPPs, as well as the drawbacks of overly strict, formal agreements in long-term, dynamic projects. The selection of the case studies used in the analysis is also described in this chapter.</jats:p>