Given the long-term nature of Partnerships Victoria projects, it is to be expected that, from time to time, either of the parties will seek an amendment to the project deed.
By negotiating and agreeing to appropriate amendments, both parties can increase the likelihood that the partnership will adapt to changing circumstances and continue to provide mutual benefits. In some instances, the private party may propose amendments to the contractual arrangements to introduce innovative service delivery processes or facility enhancements. Any proposed changes may fall within the change management mechanisms in the project deed or an alternate change mechanism via:
• modifications;
• augmentations; or
• market-led proposals (initiated by the private party solely or with other parties)
The modification process contained in the project deed of early Partnerships Victoria projects may not provide the flexibility required to accommodate significant changes to the project or project assets. If this is the case, the proposed change may fall within the Market-led proposals guideline13, and the contract director should seek further advice from DTF as to whether this is the case and how to proceed. In the Partnerships Victoria standard project deed, a regime for significant changes (referred to as augmentations) has been included to allow for such changes to occur under the project deed and not under the Market-led proposals guideline.
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13 Market-led proposal guideline (2015) available at http://www.dtf.vic.gov.au/Publications/Infrastructure-Delivery-publications/Market-led-Proposals-Guideline/Market-led-Proposals-Guideline.