8.10 A PPP scheme should be considered a success not simply at financial close, but when a satisfactory level of services is delivered on an ongoing basis once construction is complete. There are two key areas where the NHSScotland body should make arrangements to monitor the implementation of the contract, and the proposed arrangements should be set out in the ITPD. These are:
• in the period up to completion of commissioning of the new PPP facility. This will include the phased hand over of any services to the private sector operator;
• during the operational phase of the contract.
8.11 NHS bodies are recommended to appoint a monitor to ensure contract compliance in the period between financial close and the completion of commissioning of new facilities. The monitor should be provided in-house if the NHSScotland body has the necessary expertise, or should otherwise be appointed externally.
8.12 The project company or a consortium member may engage a development or project manager to safeguard its interests, manage its constituent players and drive the contract forward. The financiers are also likely to appoint a technical adviser/auditor to monitor development during the construction and start up phases. However, the NHSScotland body should also ensure that it has a monitor on site capable of managing issues on behalf of the public sector.
8.13 The role of the monitor would be to:
• safeguard the interests of the NHS for delivery of the capital works and start up of the soft and hard facilities management services;
• manage the change control process up to the operating date of the facility;
• broker the interests of all principal parties to the contract, minimising disputes and lengthy dispute resolution processes;
• oversee any staff transfers.
The aim of employing the monitor should be to add confidence to the delivery of the facility on time.
8.14 The NHSScotland body should ensure that it considers the framework for the monitoring arrangements for the operational phase of the PPP contract when the scheme is being developed at an early stage. The detail of the monitoring arrangements may be agreed in full at a date closer to the operational period itself.
The monitoring arrangements should:
• measure the performance of the private sector operator. This may be done either using the operator's own systems or directly using the NHSScotland body's systems. Whichever monitoring system is used should be fair, objective, cost effective and auditable;
• be able to respond to change control requirements throughout the life of the contract;
• provide information that can be taken into account when monitoring the value for money of services provided under the PPP contract (e.g. in market testing or benchmarking).