2.10 Authorities should consider whether they are likely to need the services of the advisers employed during the procurement, post contract signature. An optimal method of ensuring that this option is available at a cost effective rate is to include the possibility of procuring further services in the original specification. Discounted rates for on-going support should be sought when Authorities are procuring consultants in open competition. It will be difficult to forecast far in advance how much external support will be needed, but Annex B provides an indication of the work that could be required post project signature. If the project is procuring post signature support, the contract should be reviewed on a regular basis, preferably at no more than four yearly intervals. Estimated costs for external advisers should be factored into the Authority's forecast contract management estimates. The Authority should not appoint an external consultant as a project or contract manager. The procuring Authority should develop and retain these skills in house, in order to derive long term value for money as an intelligent client.
2.11 There may be instances where it is appropriate for a joint appointment to be made with the Contractor, for instance an Independent Certifier. In such cases, the costs should be shared and factored into the estimates included in the OBC. The duty of care and management responsibility for such jointly appointed personnel should be carefully drafted.
Box 2.1 Preparing for Operation - Checklist • Review the requirements of the contract. • Decide upon the structure of the Authority's contract monitoring team. • Assess the internal resources available including resources from other parts of the Authority. • Clarify roles and posts. • Estimate salaries for each post. • Review the impact of the contract on users of the service. What monitoring role, if any, will they have and who will pay for this time? Has this been factored into the budget calculations. • Make provision for additional resource for limited periods over the life of the contract so that the Authority can respond to issues when they arise. • Make provision for the training needs and succession planning of the contract monitoring team during the transition period. • Budget for carrying out shadow running of the contractual structure before contract is operational to test its efficacy outside of a live environment. • Estimate cost of support from external advisers. • Include option of support post contract signature when appointing external advisers. • Review initial assumptions in the OBC for the FBC and provide fuller information on how the contract will be monitored post contract signature. • If in doubt over preparing for contract management, contact the Operational Taskforce, or departmental Private Finance Units. |