The long duration of a PFI/PPP contract will inevitably create staff continuity challenges. It cannot be assumed that the initial Contract Management Team will be in place at the end of the Contract and it is very likely that both the Authority's and the Contractor's teams will change several times throughout the project's life. The understanding and acknowledgement of each party's objectives and constraints is essential for the success of the Contract monitoring. Within this, relationships are key, particularly the relationship between the Authority and Contractor Contract Managers. Succession planning, information capture and handover between incoming and outgoing personnel is essential, including capturing advice from outgoing staff on the management of relationships.
It is therefore imperative that arrangements are in place to allow the contract management function to continue seamlessly even when key individuals leave their post.
Maintaining continuity of staff is desirable for two reasons: firstly for knowledge retention and transfer and secondly to preserve good relationships which have been built up. However these two objectives are far too important to be left dependent on factors that the Authority cannot actually control. Therefore robust systems must be in place to ensure that if a key member of staff, such as the Contract Manager, leaves the Authority it is still in a good position to maintain a consistent and well informed approach to contract management.
Authorities should plan for changes in key personnel: e.g. project manager and Contract Manager, and make sure that there is a thorough planning for succession and a formal handover process between personnel.
Authorities should produce a Contract Management Manual which provides a clear and comprehensive guide to the contract management function. An important role for the Contract Manager during the procurement period is to write contract management documents. It is also important that there are arrangements for keeping the Contract Management Manual up to date over the term of the Contract.
Authorities should plan for change within their team and appoint a Contract Manager as part of the procurement team from at least the time of appointment of the Preferred Bidder. With the introduction of the competitive dialogue procedure, it is sensible that the Contract Manager is appointed prior to the end of the dialogue stage. Whilst the project manager will continue to be responsible for the procurement and the negotiations, the Contract Manager will be concerned with all of the details which will affect the operational period. For example, details which ensure that small works changes are workable should be agreed during the procurement period.
The Contract Manager should establish a succession planning model which ensures that a succession plan is put in place for key personnel in the Contract Management Team including non-core members. The strategy should aim to limit concurrent departures and try to maintain a mixture of new and experienced personnel as far as practicable.