4.3.4  Negotiation and Completion Phase

Once a preferred bidder has been identified, plans should be made to move the contract negotiations forward as quickly as possible. Key aspects in this phase include:

•  setting the negotiation framework. The negotiation team led by the project director sets a framework for contract negotiations;

•  executing the contract. Once the approval process is complete, the contract is awarded to the successful private party; and

•  reaching financial close. At contract execution there may be a small number of matters that financiers need to resolve before unreservedly committing their finance to the project. Following financial close there is also likely to be a range of review and disclosure requirements.