Kratika Narain

UM4002-1

Contracts in public transport are necessary to improve efficiency, increase responsiveness to market demand, promote organization, regulation and operational performance, involve private players, and allocate risks and costs. Hence, contracts can bring performance proficiency in the public sector. A well-defined contract provides better service quality, and ensure appropriate engagement of service performance with public needs and goals. A contract must be comprehensive enough to describe the division of responsibilities between the parties involved, and must not leave any room for ambiguity of involvement.