The commercial issues to be dealt with at commercial acceptance commonly include variation claims from the builder and adjustments to be made to the financial model at commercial acceptance. Resolving these issues may require analysis, negotiation, and assistance from external legal, technical and commercial advisers.
Achieving commercial acceptance at the conclusion of the construction phase is a significant milestone in a Partnerships Victoria project. At this stage of the project, there will be intense focus from both the builder and procurement team on completing last-minute construction-related tasks and planning for transition to the service delivery phase and demobilisation from site.
The project director has a key role to play in ensuring that the commercial wrap-up of issues are given proper attention at this time, and that the outcome of any negotiations maintains the project's value for money standing. The project director is responsible for developing and implementing budgetary and service payment arrangements in time for commercial acceptance.
At commercial acceptance there are budgetary, commercial and reporting arrangements within the government party and between the agency and the Partnerships Victoria team within DTF that need to be agreed. The project director is responsible for ensuring that these arrangements are developed and in place in time for the start of the service delivery phase and commencing service payments to the private party.