3.1 This section of the guidance covers the period from commercial and financial close to the PPP services and facilities becoming operational. It highlights the key aspects of the payment mechanism which research indicates need to be considered by a Procuring Authority and its advisers during the project's pre-services commencement or construction phase. This should facilitate a smooth implementation of the payment mechanism. These areas of contract management should have been considered prior to commercial close and this period allows for further development and refinement.
3.2 The specific areas covered in this section are:
o Contract monitoring arrangements including contract management structures, reporting procedures and user guides.
o Payment mechanism - planning for the operational period - confirming how it works; inter-relationship with services specification and termination events; shadow running of the payment mechanism.
o Confirming and agreeing monthly reporting arrangements/procedures and report layouts.