10.10  Transition to operations

The original business case used to initiate the project should have identified requirements and strategies for the transitioning the project assets into operational readiness. There will be different strategies based on whether the project is for a replacement asset or a new additional asset. Irrespective there is likely to be significant change management planning required. These plans should include the hiring of staff and purchasing of equipment, and also outline the change management effort (including training and potentially restructuring) needed to capture the efficiency gains the new project assets are designed to achieve. The transition planning will need to commence early in the construction phase.

This is not generally a task led by the procurement team. Instead, the 'transition for operations' activity is usually the responsibility of the contract management team, working in conjunction with operational subject matter experts and the private party

The project director should ensure that the government party and the steering committee is aware of its respective responsibilities for planning and carrying out this activity, and that this activity begins early enough. The steering committee should request a transition plan from senior operational staff. The plan should forecast the resources needed, and should factor in the need for coordination between the government party and private party teams. The project director is responsible for ensuring there is alignment between the private party's transition plan and the provisions under the project deed and that the interface is effectively managed.

In a fully outsourced PPP, the private party is responsible for operating the project asset, and typically will have appointed an operations subcontractor for this purpose. During the construction phase, the project director should ensure that the private party and its operations subcontractor are planning for the transition to operations, and that this activity begins early enough.