This section of the contract administration manual should outline the actions that will be taken should it be necessary to inform or involve other the government party agencies/entities in responding to the occurrence of a critical risk event.
If certain critical risks eventuate it may be necessary to inform or involve other government party entities such as the DTF or the Department of Premier and Cabinet. To facilitate this process the contract director should:
• understand the government party's broader risk management framework;
• identify the requirements of other the government party agencies; and
• unless the necessary mechanisms and triggers already exist in the government party's broader risk management framework -
- incorporate into the contract administration manual mechanisms for meeting the reporting requirements of these entities as to the management or status of critical risks;
- incorporate into the contingency management framework within the contract administration manual any relevant 'triggers' or 'thresholds' which should cause the matter to be referred to the other relevant the government party entity.
Generally, the DTF's interest lies in two areas:
• impacts, or potential impacts, on the State Budget (funding and output targets). This includes the risks associated with potential breaches of project agreement, litigation, price and failure to achieve project objectives; and
• changes to the contractual arrangements between the private party (or other consortium members) and the government party, and changes to any contract management agreements between the government party and other public sector entities.