Developing and implementing a contract management strategy should start at an early stage during the procurement phase so that contract management requirements are included in the request for proposal and draft contract developed by the government party (or procuring agency if applicable).
Once the project deed has been executed, the contract management strategy should capture all of the obligations relevant to the construction phase and service delivery phase based on plans developed by the successful private party during the procurement phase.
The contract management plan is the key output at the end of the procurement phase based on the executed project contracts. The plan should be developed during procurement and approved by the Treasurer and the relevant Minister within 60 days of financial close. The central task in this process is to list and understand each party's obligations and identify and analyse the key risks to the project's success. The contract director can begin the planning process by asking the following questions:
• What contract management tools and processes may be required for the project?
Appendix G lists the tools and processes discussed in this guide, and may assist the contract director to identify the tools and processes relevant to their project.
• What human, financial and technology resources are available? The available resources may dictate the form of contract management tools and processes. In instances where the government party has existing Partnerships Victoria projects on foot, it will be a case of identifying additional resource needs and obtaining related budgetary and staffing approval.
• What time constraints should be set for developing the contract management tools and processes? The time constraints should be matched to both the available resources and the expected project delivery dates and milestones. The contract management plan should also outline arrangements for a transfer of responsibilities to the contract director and the contract management team.