This guide covers two primary ways that a Partnerships Victoria project may end, either by contract expiry or termination. This chapter focuses on contract expiry. This an important stage in a Partnerships Victoria project. A range of activities must be undertaken by both the government party and the private party in the period before, during and after contract expiry - referred to as the end of term arrangements.
For some Partnerships Victoria projects, the expiry of the contract may complete the project lifecycle, while for others the ongoing service need leads to a new contractual arrangement or asset investment (undertaken according to the Investment lifecycle guidelines16).
This chapter deals with the likely issues and commercial principles for contract directors to consider before, during and after contract expiry in order to:
• plan and implement the end of a public private partnership project; and/or
• plan a smooth transition to a future asset or service arrangement.
There are a range of different Partnerships Victoria contracts, with different contractual expiry or termination arrangements which may present materially different or complex situations. This guide provides an initial source of information on the processes and provides practical assistance in assessing the next steps for the project. If required, contract directors may also seek assistance from DTF, or may wish to obtain appropriate professional advice.
______________________________________________________________________________________________
16 DTF website <http://www.dtf.vic.gov.au/Investment-Planning-and-Evaluation/Investment-professionals-toolkit/Investment-lifecycle-and-High-Value-High-Risk-products>