Business continuity is needed in a long-term deal

1.20  During a 20 year deal, personnel changes are inevitable. The EP personnel with current responsibility for delivery of the project are not the same as the team which negotiated the deal. Knowledge management is particularly important for the current deal because the contracts are large and complex and there is a heavy burden on EP in its management of it. EP needs to ensure it has a structure in place where staff clearly understand their roles (this could include job descriptions describing roles and responsibilities). EP also needs to develop processes for learning lessons and improving systems for managing the contract.12 Procedures also need to be in place for dealing with loss of staff and knowledge associated with management of the contract. For example, if EP lost knowledge of the contracts and legal agreements over time it could lead to differing interpretations of legal clauses.

1.21  In the coming months, there will also be a high degree of organisational change for EP to deal with as it is merged into a new agency - the Homes and Communities Agency. This new body's function will also include the Housing Corporation and some functions currently undertaken by the Department. The Boards of EP and the new Homes and Communities Agency need to ensure that management of the deal is not compromised.

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12  Considerations for good quality project management at the early operational stage of a project are outlined in the NAO's Framework for Evaluating the Implementation of Private Finance Projects: Volume 2 (Report by the National Audit Office, 15 May 2006).