The parties should identify and assess the special interface risks that may arise throughout the project and - irrespective of the underlying risk allocation position - acknowledge and agree that the provision of the contracted services needs to be integrated with the core services. In addition, the parties should develop, agree to and implement an effective communications strategy in respect of the day-to-day delivery of the two sets of services. The communications strategy should include an obligation to review and plan the development, operation and provision of the contracted services and core services, having regard to the likely requirements of each party. This management tool is vital for ensuring the effective and timely delivery of the project.
If service failure by the private party causes failure to deliver core services, government's key mitigation option is its contractual right to step in to facilitate effective delivery. The costs to government during step-in should generally be borne by the private party, as it is the defaulting party. If the default is material and is not resolved within the stipulated cure period, termination of the contract may be a last resort option, to allow government to procure appropriate services from another provider.
The private party's interface risk is comparatively easily mitigated, by providing for service payments to continue unabated if interference by government's delivery of core services materially affects the private party's capacity to perform its contractual obligations.