2.5  Government's relationship with the private party

Although there should be a strategic relationship between senior management of the government party and of the private party and its consortium members, senior management will not necessarily have direct visibility of the quality of the relationship between the government party and the private party at all levels. The quality of this relationship can, however, have a significant influence upon project outcomes. The contract director should therefore monitor the quality of the relationship and report on it to senior management.

The following table outlines the key performance issues, tools, and processes that can be used in assessing the government party's relationship with the private party. Relationship management is discussed in detail in Chapter 4 of the Partnerships Victoria Contract management guide

Issues to be considered

Tools or processes

What is the overall quality of the relationship?

Are appropriate communication channels being used? 

Are roles and responsibilities clear?

Are committees functioning well?

Are skills well matched?

Is there regular communication with the private party's parent company or sponsors?

Are issues and disputes being dealt with promptly and effectively?

Issues log - trends in the occurrence and speed of resolution of issues may reflect changes in the relationship

Review of communications channels - trends in the occurrence and speed of resolution of issues may reflect changes in the relationship

Interviews with the government party and private party personnel involved in the project