The adequacy of these controls was supported by an assessment conducted by DET's internal audit division. In 2004 internal audit conducted a risk assessment of the first contract of the New Schools PFP project. The report involved the identification and evaluation of risks associated with the project and the controls in place to mitigate those risks. The report was satisfied that all key risks have been appropriately managed and that any residual risks were so low that no mitigation activities were recommended. This would appear to also apply to the second contract, as the controls are generally the same or in some cases strengthened.
In our view the contract mechanisms are adequate, but require that DET closely oversight contractor performance so it can take timely action where necessary.