Key issues / challenges:

For the public partner, the ability to obtain operator performance data quickly can be crucial for dealing with situations that may be in breach of contract or for verifying performance output levels (PF06 and PF07) before the "power of the stick is lost" (PF07) (e.g. applying abatement for instances of non- or under-performance before too much time lapses or before informal precedent is claimed by the private partner - see 'Performance monitoring and evaluation', below).

Feedback into performance is often self-generated by operators. Even if a trusting relationship exists between the partners (PT03), it is prudent for the public partner - as custodian of VfM for the state - to ensure that the declared level of performance actually matches what has been delivered. PF13 provides the following rationale:

"...one of the downsides [to self-reporting] is that you've got to be on the ball and actually test what it is they're reporting on - that they haven't either gilded the lily or that they're not doing performance things and then using words that imply they're still following the contract".