As outlined above, in addition to the regular monitoring of service delivery outputs, the contract director also needs to review the project from a broader perspective, by looking ahead to identify risks and emerging issues that may impact service delivery, understanding how these risks and issues might be mitigated, and identifying and progressing ways to maintain or improve value for money outcomes for the State.
The Victorian Auditor-General's Office emphasised the importance of paying sufficient attention to the broader aspect of contract performance monitoring in the 2013 review of Operating water infrastructure using public private partnerships.11 The review found that there was scope for all water corporations with operational Partnerships Victoria projects to 'improve monitoring of service providers' financial health and broader project risks'.
The government party's monitoring of the project must also provide the information necessary to enable appropriate reporting to senior management and to DTF. Appendix C contains guidance on issues to consider in developing a service delivery phase regime for such reporting. Templates H and I contain templates for these reports, and Template J contains templates for supporting reports from any government operator of the facility.
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11 Victorian Office of the Auditor-General, Operating water infrastructure using public private partnerships, 2013, p vii.