3.1 Making changes to contracts can be time consuming and costly, and is subject to legal constraints (in particular procurement legislation) and the need to protect value for money. Before seeking to amend PFI contracts, authorities should first ensure that the existing contract provisions are up to date (reflecting variations that may have arisen) and are being applied effectively to maximise the value and minimise the costs of the project.
3.2 There are two principal measures that can drive savings from effective contract management. Firstly, ensuring that staff are appropriately trained and use best practice processes, and secondly (where appropriate) by sharing contract management responsibilities across different contracts and/or authorities. The Operational Taskforce Transition Guidance1 provides useful information and checklists for authorities to deliver effective contract management.
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1 http://www.hm-treasury.gov.uk/d/pfi_projecttransition_210307.pdf