The PPP contract should have clearly stated the obligations of the PPP Company and defined the expected service characteristics, outputs and quality standards.
Effective contract management depends, in the first place, on getting the PPP contract right. This implies setting out the procedures that guarantee close monitoring of the PPP Company's performance and general compliance with the agreed contract.
The contract management team will normally start by agreeing with the PPP Company all the tasks that each party needs to undertake and the appropriate timeframes for their completion. These operational details need to be set out in the contract administration manual (consistent with the project contracts) at the start of the project implementation phase.
Guidance 89
Effective contract management will help to identify and monitor the PPP Company's construction and operational performance. It will enable the Authority to manage the project risks over the life of the PPP contract.