The project director is responsible for ensuring that the private party is held to its contractual obligations and risk allocation. Failure to do so may jeopardise the value for money of the project.
The transition between the construction phase and the service delivery phase of the project is one point where lack of continuity between procurement team and the contract management team can put value for money at risk. Therefore, a thorough handover between these teams is vital and should include:
• the transfer of all project contracts detailing:
- any unresolved issues with financial estimates of their impact (if available);
- any contract variations to date; and
- any extra contract items agreed during the construction phase;
• provision of full details of expenditure to date; and
• detailed discussions to convey the intention of various elements of the project contracts.
The transition period places many demands on the departing procurement team, at a time when team members may be tired and ready to move on to the next project. For this reason, the government party's senior management help should be enlisted to ensure that the handover task is prioritised and thoroughly completed before the procurement team moves on. A key factor in successfully managing the private party during the service delivery phase is an effective transition and handover.