The contracts contain detailed procedures and payment mechanisms for changes.
For example, there is uncertainty about future school demand and capacity. Demand risk is borne by DET. If additional learning spaces are required at a school facility, DET must give the contractor at least three months' notice. If the contractor proposes to use DET demountable units to provide some or all of the additional learning spaces, DET must deliver the requested units. The contractor will be fully responsible for installing, commissioning and providing operational services for any demountable classrooms. The contractor will be paid for its provision of the additional learning spaces and associated services through the normal monthly payment arrangements.
But the post implementation review found that some minor changes had been made using an "overs-and-unders" system - offsetting potential cost increases against decreases. The contract had not envisaged such a system. The review recommended that future contracts anticipate the need for such a system and support it with clear Government authorisation procedures at both the agency and Treasury level. We agree.