State-initiated modifications are generally prompted by a need to expand or improve services to users. However, contract managers need to be aware that there can be short-term impacts on existing operations as a result of the State-initiated modification process.
As part of its proposal to carry out the State-initiated modification, the private party should indicate whether implementing the modification (e.g. the construction of new project assets) will negatively impact on its ability to maintain service standards and availability of existing project assets. The contract director should consider whether these claims are reasonable and valid, and should document the government party's performance expectations for existing project assets and services during the period in which the modification is being implemented.
If the State-initiated modification will result in a material ongoing change in the private party's service delivery responsibilities, it may be appropriate to require private party to meet a set of operational commissioning tests in respect of the revised services, as well as the commissioning tests for the physical assets.