Contract performance during the service delivery phase focuses on monitoring service provision, maintaining asset condition and managing payments. An effective performance monitoring and reporting strategy is based on:
• understanding the business environment and the objectives of government in entering into the project deed. It is important that performance measures are linked to strategic objectives and desired outcomes;
• understanding the private party's internal operating environment, including its cash flows and the range of subcontracted or associated service providers can lead to an awareness of the private party's strengths and weaknesses, including financial performance;
• actively monitoring the management quality of the private party, checking for weaknesses or trends that may provide an early indication of risks to the project; and
• regularly reviewing the quality of the service against the key performance indicators and services specifications. The government party acts to mitigate or control any risks that are materialising and to maximise value for money from the project.
Effective performance monitoring in a Partnerships Victoria project has a robust strategy for monitoring service delivery and accessing relevant information to mitigate any risks and take advantage of any service improvement opportunities that are materialising. |