Using up-to-date knowledge of the project's risk profile, the government party should regularly review and test (where appropriate) its individual contract management processes and tools. |
Issues to consider in reviewing contract management processes and tools include testing the original principles together with the following:
• Do assumptions remain correct? Have there been any changes in the underlying assumptions on which the process or tool was based? For example, while it may be correct to assume that the private party has a strong incentive to fulfil its maintenance obligations early in the contract term, this assumption may not hold toward the end of the contract term, and closer monitoring of maintenance performance may be appropriate at that time.
• Are resources adequate? What resources are required to effectively implement the contract management process or tool should a risk materialise in the future? Does the government party have these resources?
• Have contract management tools and processes been effective? If risks have materialised and were managed using the process or tool, how effective was it? See the discussion below in relation to 'lessons learned'.
A useful part of the ongoing review process is a regular stocktake of issues to identify trends, reassess risks, and review the effectiveness of processes for dealing with those issues.