The contract administration manual identifies: • project overview and strategic context - lists the government's project objectives, summary of project to date and related key decisions, details of the private party, and any outstanding issues that will require management by the contract management team; • service delivery KPIs and payment mechanism - references the contracted service delivery, and other deliverables, and details of the payment mechanism and abatement arrangements. Records any key matters including abatements made; • what needs to be done, by whom and when - assigns accountabilities, identifies the government party's obligations, and mitigation and control of risks. It lists the private party's reporting arrangements and how the government party will monitor these (performance monitoring during the service delivery phase is discussed in detail in Chapter 11 of this guide). • how government's role will be performed - outlines the government party's proposed approach to managing the project. Identifies the resources, delegations and authorisations required for government to perform its obligations, and available budgetary and staffing position allocations. If required, it may also outline the approach to servicing government sector customers, detailing the roles and responsibilities of each party which may be detailed in a separate agreement such as service level agreement (SLA); • interface arrangements with the private party - identifies key private party counterparts and communication arrangements, including formal meetings and shared knowledge management arrangements; • stakeholders and communications - outlines key stakeholders directly impacted by the project, or with a strong interest in the project, and arrangements for communication with these stakeholders; and • contract rights - the ramifications of any non-performance or default by the private party or the government party, and how these should be addressed. Identifies the contingency framework and issue and dispute resolution mechanisms. The contract administration manual collects the document references for all of the tools and processes used in managing the project. The contract administration manual is not a substitute for the terms of the project deed. It reflects the project deed and, when using the contract administration manual, the contract director should refer back to the project deed whenever this is appropriate to give a full understanding of the content of the contract administration manual. |
The foundation of contract administration manual is a strong understanding of the contractual arrangements. Contract directors need to be familiar with the government party's obligations, both express and implied, to minimise the risk of default by the government party, hindering of the project by actions of government party, and inadvertent take-back of risk. After identifying these obligations, contract directors must ensure that these obligations can be fulfilled and the project deed can be managed efficiently and effectively. A contract director needs to:
• understand how government's obligations will be met, the consequences if they are not met and their time sensitivity; and
• ensure that there are resources available to undertake these obligations, and that relevant staff have appropriate authority.
The contract administration manual is a key tool to enable contract directors and the contract management team to carry out these tasks. It is part of a dynamic system to ensure the outputs sought by the government party through the Partnerships Victoria process are delivered by the private party. The contract administration manual should assist the contract director and the contract management team to understand the project deed and the environment in which the project deed must be administered.
Where other public sector entities are the end users of the contracted services or other services provided in relation to the project assets, the contract administration manual also informs those entities of the government party's rights and obligations.
The contract administration manual should provide answers to the key questions:
• What needs to be done, by whom and when?
• What are the ramifications of any failure to deliver contracted services, or default by the private party or government party, and how should these be addressed?
• What are the service delivery requirements and payment arrangements?
• Who are the key stakeholders and what are the communication arrangements?
It should also provide the historical context and address strategic issues, such as:
• How will the government party's role be performed?
• What is the strategy for managing the project and for dealing with the private party?
• What was the rationale for key decisions made in the project to date, and what lessons have been learnt?