5.16 PPPs are long term arrangements. Public authorities and contractors should strive to approach projects in a spirit of partnership. Poor relationships and poor performance go hand in hand, one driving the other in a vicious circle. Conversely, those that have improved performance have often focused on improving the relationship first.
5.17 A traditional customer-supplier relationship often leads to decision-making which is not focussed on the business as a whole. That can drive behaviour which misses opportunities to achieve wider objectives or opportunities. Many contract managers and contractors tell us that they have a commercial relationship of "us and them", and that this is a fixed reality that cannot be changed. But we have seen the most successful projects build concrete partnerships that respect the commercial and contractual basis of the relationship. This includes the enforcement of contractual terms, whilst focusing on the wider picture of how to achieve mutual benefts.86
5.18 Partnership working requires both the right contractual framework and working culture. Contracts need to align incentives and set out the governance framework through which the relationship is established. Staff must be equipped with the appropriate contract management skills to manage the relationship. We recommend that public and private sector partners should seek to understand each others' businesses and establish a common vision.87
5.19 It is also important to plan how the relationship will be managed and what partnership working means during the tendering phase. Delivery has often been delayed because working practices are not thought through or planned until the project is already underway.88
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86 (E.g. National Savings and Investments deal with Siemens Business Services: four years on, National Audit Office (HC 626, 2002-03), Building Schools for the Future, National Audit Office (HC 135, 2008-09).
87 Managing the relationship to secure a successful partnership in PFI projects, National Audit Office (HC 375, 2001-02).
88 Building Schools for the Future, op.cit. Managing the relationship to secure a successful partnership in PFI projects, op.cit. Innovation in the NHS: LIFT, National Audit Office (HC 28, 2005-06).