5.1.2  Monitor and manage project delivery and service outputs

The contract should have clearly stated the obligations of the PPP company and defined the service characteristics, outputs and quality levels expected.

□  Effective contract management depends, in the first place, on getting the contract right. This implies setting out the procedures that guarantee a close monitoring of the PPP company's performance and general compliance with the agreed contract.

□  The contract management team will normally start by agreeing with the PPP company all the tasks and sub-tasks that each party needs to undertake and the appropriate timeframes for their completion. These operational details are generally absent from the PPP and operation & maintenance contracts and need to be set out in a contract administration manual (consistent with these contracts) at the start of the contract management phase. <1>

□  If implemented properly, effective contract management will identify and monitor the PPP company's operations and public authority's responsibilities and manage all risks over the life of the contract to achieve the project objectives.