The elements of a contingency framework may include:
• a list of key stakeholders dependent on the contracted services, or which may be affected by a service failure, and up-to-date contact details including out-of-hours details;
• a list of other government stakeholders that should be advised of contingency events (on a 'need to know' basis) and up-to-date contact details including out-of-hours details;
• the basis of a communication strategy;
• a plan for accessing alternative sources of service;
• a plan for accessing additional budget funding; and
• a plan for engaging expert advisers, as needed, at short-notice.
This contingency framework should link to the government party's wider business continuity and disaster recovery plans, if these exist. This contingency framework should be appended to the contract administration manual, be regularly updated and should address the following types of events:
• events that interrupt service delivery but do not involve default by the private party - for example, force majeure events;
• events that interrupt service delivery and involve a default by the private party - for example, the private party fails to maintain the project assets as required by the project deed, and consequently fails to meet the services specification; and
• private party defaults that do not result in an interruption to service delivery - such defaults could include failure by the private party to maintain professional indemnity insurance as required by the project deed, and subsequent insolvency of the private party because of a negligence claim.
There may be merit in the government party identifying the range of significant potential contingency events in a Partnerships Victoria project. This will inform the contingency management framework that can be applied readily should any specific event occur.