To be effective, contract management planning must start early in the procurement phase of a Partnerships Victoria project. Contract management builds on the risk allocation framework outlined in the relevant National PPP guidelines: commercial principles and the Partnerships Victoria standard project deed guidance notes. While the procurement phase places a strong focus on risks, especially those being transferred to the private sector, contract management planning must place a strong focus on the project risks retained by the government party and on the risks associated with managing the contract.
The contract management plan should outline the key steps and responsibility for developing a contract administration manual. Precedent documents developed for other projects may be helpful to guide a contract director unfamiliar with these processes.
The contract management plan is a relatively high-level document outlining the key steps that are proposed to develop an effective contract management regime for a Partnerships Victoria project.
Template A provides a recommended structure and included content for the contract management plan.
Developing a contract management plan is a key activity for the government party during the procurement phase and early construction phase of the project. Aspects of the plan will be relevant to the construction phase.
The contract management plan should include:
• internal governance arrangements, identifying the key persons responsible for management of the project and related contractual arrangements and associated committee and reporting arrangements. These apply to the construction phase and the service delivery phase, and how to transfer responsibilities between these stages;
• budgetary and staff position allocations for contract management, and whether supplementary funding and/or additional positions are sought. This covers staffing and funding for consultancy, administrative and systems support;
• proposed contents of the contract administration manual and timing and process for its preparation and implementation; and
• proposed knowledge management arrangements.