4.1 Past studies of PPP projects during the operational phase have highlighted a problem maintaining continuity of staff on both public and private sides. Continuity is important for two reasons: firstly for knowledge retention and transfer and secondly to preserve good relationships which have been built up.
4.2 Authorities often aspire to retain the project manager after the procurement phase and require that person to become the contract manager over the operational phase of the project. This is often unrealistic and the project managers may not have the appropriate skills in contract management. In practice many project managers leave projects once the contract is signed in order to start on a new procurement. Some project managers stay with the project during the construction period but once the operational phase begins, it is likely that the project manager will leave the project or the Authority if they do not wish to pursue a career in contract management and there are no subsequent projects being procured.
4.3 Consequently, Authorities need to ensure that, during the procurement phase, the project manager is not just concerned with "deal closing" and that there is sufficient focus on the likely impact of the contract negotiations on the project over its life. It is advisable that the project manager remains employed within the Authority during the construction and or interim services phase so that a structured handover can be affected from the project to the contract manager. For instance, the contract manager will need to understand the rationale for the outcome of the negotiations on the contractual documents. This is especially relevant in respect of the Payment Mechanism regime, risk management, utilities and malicious damage.