It is common for a project deed to include delegations by the Minister who executes the project deed, or by the government party if it is a separate legal entity. These delegations allocate particular functions, rights and powers under the project deed (and other project contracts) to the holders of specified positions or specified individuals. For example, some powers may be delegated to the Secretary of the relevant department, and others to a person nominated as the project director or contract director. There may be a clause or schedule in the project deed that identifies all the delegated functions, rights and powers. A typical clause delegating functions, rights and powers in this way is:
'The State may from time to time appoint a person to be contract director. The contract director will have the functions, rights and powers set out in Schedule xx.'
Alternatively, specific clauses in the project deed may confer specific functions, rights or powers on the holders of specified positions or an identified individual.
In some instances, legislation applying to a project will also delegate functions.
In addition to delegation in the project deed or legislation, particular functions, rights or powers may be delegated in separate instruments of delegation. For example, the Minister of the relevant department may give a separate delegation of a particular power conferred on the Minister by the project deed.
The contract director should maintain a delegations register identifying the functions, rights and powers delegated under or in relation to the project. A delegations register template is set out in Template D.
The contract director should also keep a record of authorisations in which one person authorises another to exercise any function, right and power relating to the project on behalf of the first person. The authorisation should be in writing. If there are numerous authorisations relating to the project, these should be summarised, either by identifying in the delegations register who is authorised to exercise each delegated function, or by establishing a separate authorisations register and storing this with the delegations register.
If a member of the contract management team is exercising a function that involves making a financial commitment on behalf of government, they must have capacity to make that financial commitment, as well as legal authority to exercise that function.