3.3 Prior to services becoming operational a Procuring Authority should consider the contract monitoring arrangements it plans to implement for the contract. This will have been considered during the project negotiation phases and reviewed prior to financial close as part of the Key Stage Review/Gateway processes.
3.4 The Contract Monitoring and Management arrangements need to be considered on a number of levels including:
o The roles and responsibilities of the Procuring Authority's Project Board, Project Manager, Monitoring Team and support services to be provided by different service areas within the Procuring Authority.
o The interface with the PPP Contractor - who are the day to day contacts, what is the escalation process in the event of problems developing with the services to be provided?
o The development of procedures relating to the day to day operation of the PPP facilities and services and the respective roles and responsibilities of the Procuring Authority, the Facility Users and the PPP Contractor.
o The development of procedures to manage the payment mechanism and to verify payment details.
3.5 Further guidance on these areas can be found:
1. in the Scottish Government Briefing Note: Managing PPP Projects - From Financial Close to Operations which is on the Scottish Government website at www.scotland.gov.uk/Topics/Government/Finance/18232/12271; and
2. the Operational Taskforce No. 2: Project Transition Guidance which can be accessed at www.partnershipsuk.org.uk.
3.6 It is recommended that a contract administration manual is produced which collates information on the processes and procedures for managing the operation of the contract including responsibilities and timescales. This should, at a minimum, cover the issues noted above.
3.7 During this phase the Procuring Authority will need to work closely with the PPP Contractor. There are areas of operational procedures and contract management procedures which will need to tie into the PPP Contractor's proposed procedures.
3.8 In determining the contract management structures to be put in place Procuring Authorities should ensure consistency between the team who negotiated and managed the procurement and the team who will be involved in managing and operating the PPP services. Authorities who have achieved this have noted the benefits to enhancing the smooth transition to the operational phases due to their detailed understanding of the services to be provided. This can be particularly important if the PPP Contractor's staff who operate the contract are different to those who negotiated it.