The following table sets out suggested content for a contract director's regular reports to senior management during each private party performance reporting and payment cycle. The contract director should adapt this content as appropriate for the specific project.
Report section | Guidance on content |
Background and approval requirements | Information on the purpose of the report and a summary of any approvals being sought, including the timeframe in which any action is required. |
Project performance | Summary information on the delivery of overall service outcomes from the project, focusing on whether the project is meeting the relevant need. |
Service delivery performance | Summary information on the private party's performance against the KPIs or service requirements during the relevant performance period. The information should be concise, yet sufficient for senior management to understand any material performance issues, particularly where there is a potential impact on payments or where substandard performance may contribute to future default triggers under the contract. A 'traffic light' system of colour-coding performance against the contractual targets can be a valuable visual tool for conveying performance information. |
Performance trends | Information on trends in performance against the KPIs. The appropriate period over which trend performance should be examined will depend upon the specifics of the project, and will be influenced by such factors as: • how long the project has been in its service delivery stage; • past performance; and • emerging issues (for example, a significant recent increase in demand for the infrastructure may imply the need to focus on trends over the period since that increase). |
Risks borne by the government party | Information on managing risks allocated to the government party. Information on any material new risks or material changes in the likelihood or potential consequences of any risks allocated to the government party. |
Payment calculation:
| An explanation of the calculation of the relevant payment, validating that it is consistent with the requirements of the contract. The explanation will typically include the following components: • Base payment: The base amount payable under the Partnerships Victoria contract for the relevant period. • Indexation: An explanation of how any relevant indexation regime under the Partnerships Victoria contract has been applied to the base payment. • Abatements: A description of any abatements for the relevant period and how they were calculated. This should be linked to the discussion of service delivery performance. • Adjustments: An explanation of any other payment adjustments, for example, any costs that are passed through to the government party under the contract. |
Consultation | Information on consultation with other parties in relation to the matters discussed in the report. |
Recommendation | If required, a recommendation for action to be taken by senior management. For example, a recommendation that the relevant payment be approved. |