The Contract Manager should make sure that the Authority is not being asked to pay for something that already forms part of the Contract and will therefore have been costed within the Contractor's financial model.
The Contract Manager should also be aware that the Change Protocol includes a mechanism for the Authority and Contractor to share the benefit of any cost reductions generated by a Contractor Change. The WIDP Contract assumes a 50:50 sharing ratio, but this is a bid back item that is likely to vary from project to project depending on the position taken by the Contractor in its Final Tender and recorded in the Contract. The Contract Manager should make sure the Contract Management Manual captures this sort of detail on a project specific basis, highlighting the percentage share of any saving resulting from a Contractor Change that will be for the benefit of the Authority through a decrease in the Unitary Charge.
The Contract Manager should refer Contractor Changes to its Finance Department. It is likely that financial advisory input will be needed if there is likely to be an adjustment to the Unitary Charge.
Finally, the Contract Manager should have in mind the scope for agreeing changes within the constraints of public procurement law, as outlined at Section 5.2. Early involvement of the Authority's Legal Department is essential.
Many of the practical points made under section 5.2 (Authority Changes) apply equally well here, for example in terms of keeping a register of changes, considering the impact on any plans, the Final Business Case and risk log.
As mentioned at Section 5.2.1 above, the WIDP Contract identifies specific circumstances that should be dealt with under the Change Protocol. Those changes that may be instigated by the Contractor under the Change Protocol include:
• changes that the Contractor wishes to make to its design for the Facility, as set out in Schedule 29 (Design Proposals), unless these changes should be dealt with under the Planning Schedule; and
• changes that the Contractor wishes to make to the Service Delivery Plan included within the Contractor's Proposals.