Experience shows that the Authority's senior management team may regard the signing of the Contract as the conclusion of the process and the end of their involvement with the project. The Contract Manager should seek to counteract this tendency by early briefing senior managers in relation to the process and risks associated with the period form close to steady stage operations. (S)he should give consideration as to what decisions will need to be taken by the Authority and highlight ones those which could usefully be considered by a Contract Management Board involving the Authority's senior managers.
The Contract Management Board would typically meet monthly during the Transition Period and less frequently, normally quarterly, once the Contractor has demonstrated an ability to maintain a stable and acceptable level of service. This matches the frequency of the Liaison Committee meetings under the WIDP Contract. Some Authorities have found it beneficial to hold their Contract Management Board meetings shortly before the meetings of the Liaison Committee.
The primary objectives and functions of the Contract Management Board are to:
• review the regular contract monitoring report, prepared by the Contract Manager, and ask for investigation of any matters arising from it;
• review and approve the Service Delivery Plans submitted by the Contractor;
• consider how to resolve issues regarding production of information which impinge on the Board's ability to perform its role;
• continually review the fit between the project's outputs and the Authority's strategic objectives especially in relation to waste management, energy efficiency and carbon management;
• review the effectiveness of the contract management arrangements and identify any necessary changes;
• review the budget report prepared by the Contract Manager for the contract management function showing the spend against the budget for the year to date and the estimated position for the whole year against the budget for the year;
• review reports on the payments to the Contractor, monitor the payments against the anticipated expenditure for the year and consider the reasons provided for the variances;
• consider any issues relating to contract management that the Contract Manager has escalated to the Board;
• anticipate any forthcoming issues (e.g. identifying early in the Contract Year that the Authority will not meet its Guaranteed Minimum Tonnage and instructing the Contractor to source Substitute Waste sufficiently in advance that it can take effective actions);
• consider the impact of any delays to the timetable on the Authority;
• review any areas of conflict between the Authority and the Contractor and decide on the approach to be taken or to escalate the issue;
• ensure the Liaison Committee is fully and accurately briefed on the Authority's position on issues of concern to that Committee; and
• promote an effective and constructive relationship with the Contractor.
The constitution and the procedures for the Contract Management Board should be clearly agreed early in the Transition Period and then documented as part of the governance arrangements. These should set out:
• the membership of the Board;
• the quorum for a meeting;
• the frequency of meetings;
• the Board's terms of reference;
• the limits to the authority of the Board;
• to whom the Board reports and which member of the Board is responsible for reporting upwards;
• the duties of the Board members in relation to the project; and
• the quality assurance arrangements for the Board.
Once documented these arrangements should be incorporated into the Contract Management Manual.