At the core of a successful contract management framework is a strong working relationship between the project director (and contract management team) and the consortium (including both the private party and its subcontractors).
The construction phase of any project can involve a fast-moving, high-pressure work environment. Deadlines, unforeseen design issues, accountability requirements, and pressure from stakeholders are common issues faced by project directors.
It is important for people with contract management responsibilities to ensure that the relationships between the government party and the private party teams begin and remain professional and productive at all times. This will not happen by chance, and requires active effort and monitoring to build and maintain a solid relationship.
Project directors need to balance short-term imperatives during the construction phase with long-term service objectives. In particular, it may be important to remind procurement team members that during the construction phase, which has a limited duration, hard tactics and destructive personal styles that may produce short-term benefits in negotiations are likely to be counterproductive in the longer term.
The project deed outlines the contract management protocols and expectations for regular meetings between the parties, the private party's reporting requirements and dispute resolution mechanisms. In addition to these contractual processes the professional conduct of the government party during the construction phase, particularly in working through disagreements constructively, may assist to develop a successful working relationship with the private party throughout the life of the project.