In developing a default plan the plan should be short, clear, easily understandable and available.
The key issues to consider in developing and maintaining a default plan for a Partnerships Victoria project include:
• What are the potential default events?
• To what extent does each default event affect the provision of the services, both immediately and in the longer term?
• What time periods must expire before the government party can act in response to the default? What is the timeframe for the cure periods available to the private party (or its financiers)?
• What remedies are available under the project deed? What are the potential consequences of each remedy?
• What are the roles and responsibilities of the government party personnel responsible for activating and implementing the default plan? Do they understand their roles and responsibilities?
• What resources are required to implement the default plan? How will these be mobilised?
• What information is required when implementing the default plan? The information requirements should be considered when developing the government party's knowledge and information management strategy, discussed in Chapter 7.
• What communications are required to activate and implement the default plan?
• What communications to stakeholders, the public and the private party are required when the private party is in default? A proactive communication strategy can reduce the incoming queries from concerned end users, the public and the media.
• How will the government party exit from the default process? This may be through a return to 'business as usual' service provision by the private party, a negotiated outcome, termination of the project deed (and associated project contracts), or another outcome specified in the project deed.
• Is the default plan available to the people who need to invoke it?
• What notices have to be given to clear away any estoppels or waivers which have arisen in contract management?
• Are there any duties of good faith applicable? If so, what notices do these duties require the government party to give before it can take further action?