The RWH's CMP is the first step in developing and maintaining an effective contract management strategy. It provides the foundation for the development of the Contract Administration Manual (CAM) and aims to establish a culture of continuous improvement through the development and systematic review of the contract management tools and processes throughout the life of the contract.
Specifically the CMP covers all material areas of contract administration under the Project Agreement and is the precursor to the CAM.
The Partnerships Victoria Contract Management Guide provides specific guidance about the requirement for a CMP that itself requires:
• an initial CMP to be developed early (and with sign-off obtained from senior management) in the procurement process prior to the commencement of the CAM
• a final CMP (even before the completion of the CAM) to be completed as soon as possible after the execution of the contract during the transition from procurement to contract management
• final CMP and details of the CAM to be submitted to government within three months of contract execution to inform government of the proposed contract management strategies.
The Partnerships Victoria guidance states that the implementation of a CMP-by the development of an effective CAM-is a key activity for the state during the procurement phase of the project and the transition from the procurement phase to construction and service delivery.
Audit reviewed the approved CMP for the RWH and observed the following:
• the CMP was submitted to and noted by government in April 2006. This was 12 months after contract execution (April 2005), which did not conform with Partnerships Victoria guidance
• the CMP, specifically the CAM outline, was updated in April 2008. The changes relate to the target dates for the completion of various CAM components relating to the operating phase.