4.5.1.  Contract Management

After contract execution, management of the project will normally be transferred to an implementation team and ultimately to ongoing agency service delivery arrangements. For risk to be managed effectively after the contract becomes effective the foundations for contract management must be incorporated into the RFP and the draft contract provided to bidders, then maintained through further development and finalisation of the contract. In addition, the steering committee may need to increase its involvement in the last 2-3 years prior to contract expiry to oversee the handover of assets (if any) and transition procedures.

For many projects, it may be useful for the procurement steering committee to oversee the implementation of the project during the initial delivery phase (i.e. during construction and at least the first two years of operations). In NSW, Cabinet may also require regular progress reports for major projects so that it can monitor implementation. This will be determined on a case-by-case basis.

All PPP projects should compile a contract management plan and contract administration manual to assist the agency in managing the PPP contract during the life of the project, including end of contract procedures and asset handovers. Also see Appendix H, Volume 2 of the National Guidelines. These documents will need to be signed off by the CEO (or equivalent) of the procuring agency.