The content of the contract administration manual should be arranged in an accessible and useful format. A recommended template and a methodology for developing the content of the contract administration manual using this template is outlined in Template B. The contract administration manual needs to build on the contract management plan, and be practical and relevant to both the day-to-day and the longer term management of the project deed. Therefore, it should:
• provide a strategic context - the contract administration manual should provide a brief historical summary of the project to date, including the service delivery context, the rationale for key decisions and discussion of key issues with the private party, and outline key elements of the private party. It should also outline the strategy for achieving the government party's project objectives. The contract administration manual should include a summary of 'the deal' that illustrates the intent behind the project deed and its key provisions, rather than simply repeating or describing the meaning of contractual clauses. In this sense, it should capture what the project deed is trying to achieve and whether it is in fact being achieved;
• highlight actions - the contract administration manual must highlight, on a rolling basis, the most immediate and critical actions that must be taken by the contract director to administer the project deed. These actions need to be set in the context of a clear understanding of the commercial intent of the parties, and the relevant commercial, legislative, regulatory and policy background. These actions should be included in an obligations register (see below for further details). Actions will extend beyond those listed in the project deed, and should include matters such as the need to undertake gateway reviews during the service delivery phase and prior to contract expiry;
• align resources - the contract administration manual must enable the contract director to identify the resources required to perform necessary tasks and manage the most time-critical and materially significant risks at various stages during the project lifecycle;
• support governance - the contract administration manual must support public sector governance practices, including communications, accountability and decision-making processes. It should outline internal reporting processes, including to the senior responsible owner and DTF;
• collate contract management tools and processes - the contract administration manual must provide a cohesive set of contract management tools and processes. Some of these tools and processes may be developed separately from the contract administration manual. For example, the government party's communications strategy for the project may be integrated with the government party's agency-wide communications strategy. The contract administration manual needs to outline processes for:
- identifying, monitoring and reviewing a risk analysis for contractual and other risks;
- understanding service obligations, obtain reports, monitor performance and have clear payment arrangements; and
• ongoing review and development - the contract administration manual must be a dynamic document, updated regularly so that it remains relevant throughout the project lifecycle. The contract director should implement procedures for reviewing and updating the contract administration manual at regular intervals.
The contract administration manual should include an obligations register which clearly outlines the key actions of the contract management team, and includes:
• the specific action;
• the individual responsible for the action; and
• the time or date by which the actions will be done (including whether the action is required once only, recurrently, or in response to specific events).
The contract director may find it convenient to set out this information in tabular form. Template C shows a sample obligations register.