The handover from the outgoing contractor to a new contractor can be a high risk period and if not managed well can result in a decrease in the level of service provided and in relationships with both contractors becoming strained. There is also a risk that one or both contractors could incur additional unforeseen costs and seek to claim reimbursement from the acquiring entity. It is therefore in the acquiring entity's interests to plan the handover arrangements carefully.

Handover from the outgoing contractor to a new contractor can be a high risk period.

Reminder: The approved transition out strategy or plan prepared by the outgoing contractor should address the key matters and actions that need to be considered and undertaken as part of the handover of service delivery to a new contractor.

Ideally handover arrangements should involve an agreed period of overlap where the new contractor works alongside the outgoing contractor to achieve as seamless a transition as possible. This period should be used by the new contractor to acquire as much information and knowledge about their responsibilities as practicable and be used to transfer ownership and/or custody of materials and assets to the new contractor in accordance with the outgoing contractor's contractual responsibilities.

Where an overlap transition period is not realistic or possible (as will often be the case) the acquiring entity should take steps to maximise the transfer of information and knowledge to the new contractor. This can involve:

•  arranging formal and informal discussions between the parties

•  arranging for the new contractor to access procedural documents and processes prepared and used by the outgoing contractor

•  facilitating the transfer of custody and/or ownership of assets and contract materials to the new contractor, and

•  arranging discussions between the new contractor and stakeholders, particularly entity senior management and end-users so the new contractor can obtain a firsthand view of requirements and expectations.

Where an overlap transition period is not realistic or possible the acquiring entity should take steps to maximise the transfer of information and knowledge to the new contractor.

Good Practice Tip: Entity involvement in handover arrangements 

While contact between the outgoing contractor and the new contractor is important, the acquiring entity should generally be involved in such discussions. This will assist in ensuring the right messages are being given to the new contractor and allows the acquiring entity to inform the new contractor of its expectations.