A contract administration manual must be regularly reviewed and updated to ensure its ongoing relevance to the project. |
A Partnerships Victoria project generally involves the delivery of contracted services to or on behalf of government under a long-term contract. Each party's obligations and the risks if these obligations are not fulfilled vary at different points in the project lifecycle.
An effective contract administration strategy must recognise and reflect the current stage in the project lifecycle but also include forward looking processes (e.g. planning for reviewable services periods.) The contract administration manual needs to be regularly reviewed and updated. There should be a formal review:
• at pre-determined milestones; and
• in response to significant events affecting the project.
A review of the contract administration manual should assess any variations to the project deed and the environment in which the project deed has been managed. Any review should critically assess the contract administration manual and determine whether it is adequate to manage the project risks and any changes in the contract environment.
The need to maintain an up-to-date contract administration manual was an express recommendation made by the Victorian Auditor-General's Office in its 2013 report, Operating water infrastructure using private public partnerships.
If a contract management tool or process is developed separately from the contract administration manual, the contract director should ensure they are also kept up-to-date as the tool or process develops over time.
In reviewing the contract administration manual, the contract director may need to consider complex issues that arise under the project deed. It is likely that the contract director will need access to ongoing legal advice to assist. The contract director should ensure there is an adequate budget for this ongoing legal advice and representation.