Although concession deeds contain hand-over clauses, transition arrangements must be effectively managed by the public partner (including maximising the use of these periods for developing detailed tender specifications, running procurement processes, obtaining government approvals, etc) otherwise VfM outcomes could be put at risk. As RK05 explains:
"The danger is because you have left the planning too late, you end up in a position where you have to negotiate with the incumbent at least for an initial period for them to stay on. Even if it's not negotiating with the PPP company, but with the facility management sub-contractor, it's [still] not an optimum situation".
Thorough planning is essential even if it is highly likely that an existing facility manager, for instance, will be retained - as the state is obligated to demonstrate that whatever decision is taken, it represents the best VfM option (RK05). Moreover, by going to tender under such circumstances, it may increase the prospect that the incumbent will provide a more competitive price for delivering services (RK05), therefore increasing the client's level of bargaining power.