Risk management

The risks that the contract management team will need to manage fall into different categories: <5> 

□  project risks contractually allocated between the parties;

□  intrinsic risks borne by the public contracting authority;

□  project risks not contractually allocated; and

□  risks associated with changes to the contract.

It is essential that the contract management team has a clear understanding of the requirements of the contract and the rationale for those requirements. The role of the contract management team will be different depending on whether or not these risks have been identified in the contract and contingency plans established.

Any potential problems should be identified early and acted upon. If problems appear to be persistent, and if the project company's first point of contact cannot deal with them, the issue should be elevated to a more senior level. Procedures like this will usually be specified in the PPP contract administration manual.

Reporting requirements may be more complex for cross border projects, or those that have benefited from public sector capital contributions, either from European Commission or national funds.