The project director and contract director

It is essential to the success of a Partnerships Victoria project that a suitably qualified individual has overall responsibility for managing the project from the date of contract execution to achieve project objectives and value for money over the project term. This person is the State representative under the project deed.

Figure 3.1 below shows how the transition of responsibility for management of the contract generally occurs on projects from the procurement phase to the service delivery phase.

Figure 3.1: Transition from project management to contract management

Generally, the project director during the procurement phase will remain engaged on the project during the construction phase to manage the design and construction process. The timing of transition to a contract director can vary. 

The appointment of a contract director should be identified early in the construction phase and will usually be either the: 

•  appointment of the project director as the inaugural contract director following commercial acceptance. If the project director during the construction phase becomes the inaugural contract director, the project director should appoint a contract management team with responsibility to develop the contract management tools and processes during the procurement process; or

•  appointment of a new contract director. If the project director does not intend to remain engaged on the project after commercial acceptance, a new contract director should be appointed as early as practical during the construction phase. 

Regardless of when the transfer of responsibility from the project director to the contract director occurs, the contract director must be familiar with the project, and be ready with the necessary tools and processes before the start of the service delivery phase.

The project director, the procurement team and their advisers should assist the contract director to establish these contract management tools and processes. The project director must ensure the procurement team's knowledge is transferred to the contract management team. Where feasible, the project director should provide support as necessary until the project has reached stable operations, working with the inaugural contract director during the transition.