The principal objectives of contract management systems in the context of waste PFI/PPPs projects are to:
• protect the Authority, over the anticipated lifespan of the Contract, from dilution of the commercial position negotiated during the procurement period;
• maximise the value for money available from any Contract Changes made in accordance with the Change Protocol;
• ensure that the Authority receives what it is paying for, within the boundaries of the Contract whilst achieving value for money. This means optimising efficiency, effectiveness and economy of the service or relationship described by the Contract, balancing costs against risks and actively managing the customer-provider relationship;
• make sure that the works and services which the Authority has procured are delivered and that the Contract continues to provide a high level of service to its users; and
• monitor performance so as to assure delivery of the service to the contracted standard: and report benefits delivery to WIDP to provide assurance of value for money being obtained from the taxpayers' PFI investment.
For Contracts developed and signed under the Best Value regime, there will have been an aspiration to demonstrate continuous improvement over the life of the Contract. While certain aspects of the Best Value regime have changed over time, for example the performance framework, the Best Value duty itself continues to apply to Authorities. Section 5.2.2 of this guidance covers the Best Value Regime in more detail.
If the following characteristics of contract management are present it is likely that the Contract will deliver its objectives:
• both Contractor and Authority have a clear understanding of the performance standards to be met;
• both Contractor and Authority have a clear understanding of the dispute resolution process, the escalation pathway, and the sanctions to be applied if performance standards are not met;
• the Authority's Contract Management Team performs an effective, informed, client role in which the Contract requirements are applied robustly, consistently and fairly from the outset; and
• the Authority's Contract Management Team deals effectively with any changes that become necessary during the operational life of the Contract.