The project deed should clearly identify the obligations of the private party and the government party and enable the parties to build a productive relationship. The project deed (and other project contracts) drafting and negotiation process is conducted with the understanding that the project contracts will form part of a broader risk management framework for the project.
The relationship between the parties is an essential component of effective contract management. The project contracts should not be so rigid that it precludes flexible, constructive management or the natural maturing of the relationship between the parties.
The foundation for good contract management will be established during the procurement phase by including a contract management perspective in the procurement team. The project director and procurement team must work with the contract director and contract management team (who will be responsible for managing the project during the service delivery phase) to develop an effective contract management strategy and ensure a smooth transition.
Effective contract management must be initiated early in the procurement phase of the project and requires a strong understanding of the project deed (and other project contracts). |