Drawing on experience overseas and interstate, DET identified the key contract issues likely to arise during the procurement including:
■ risk transfer - determining those risks best allocated to the private sector
■ use of an output-base specification - under a PPP approach the services provided needed to be specified by DET as required outputs to allow the private sector scope for innovation in facility and service delivery
■ long term nature of the contracts - this was viewed as a key condition for delivering value for money because of the scope it gives to recover the initial investment, develop alternative approaches to service delivery and focus on whole of life costing
■ performance measurement and incentives - payments to the contractor would depend on it meeting the specified performance criteria.