At a glance
Background The Government of Victoria's Partnerships Victoria approach focuses on the purchasing of service outputs with agreed quality, quantity and timeframe parameters. This approach differs from traditional public sector procurement methods which usually focus on delivery of an asset or a specified service input. As the focus of public private partnerships (PPPs) is on the long term, performance monitoring during both the construction and the operating phase is critical to make sure that expected value is being achieved. Key findings • The state has been adequately managing the design and construction phase of the project. The relevant frameworks and structures in place provide assurance that the design and construction phase was managed effectively. • The actual project costs are expected to be within the approved budget. • Construction milestones have been met to date, including the final completion date of 12 June 2008. Plans in place for the relocation are comprehensive and include all relevant parties to the move. • Information in the Project Agreement and schedule regarding expected service delivery specifications is reasonable in terms of the required services to be delivered. • Partnerships Victoria guidelines were not fully complied with regarding the suggested timing of development and finalisation of the Contract Management Plan and Contract Administration Manual. • At the date of this report, the Contract Administration Manual remains incomplete with some components due for completion and endorsement prior to the commencement of the operating phase, and other critical components are not due for completion until November 2008, after the commencement of the operating phase. |
It is recommended that DHS: • fully document the processes designed to manage, monitor and review the performance monitoring program and the abatement process prior to the commencement of the operating phase (Recommendation 5.1) • expedite its consideration and approval of the formal establishment of a contract management unit. This unit should be adequately resourced to ensure an effective contract management function is performed during the operating phase (Recommendation 5.2) • complete and endorse the Contract Administration Manual as a matter of urgency to supplement the Policy and Procedures Manual prepared by the project company. (Recommendation 5.3) It is recommended that DTF: • review the Partnerships Victoria contract management guidance in relation to Contract Management Plans and Contract Administration Manuals to ensure it is clear and unambiguous, particularly in the following areas: • whether a Contract Management Plan and Contract Administration Manual needs to be prepared at the design and construct and/or operating phases of the project • whether Contract Management Plans need to be re-submitted to government if materially amended after initial noting. (Recommendation 5.4) |