The first step for the Procuring Authority is to understand the nature of the role that it is required to play in managing the relevant PPP contract. The structure and size of the contract management team should depend on the level of involvement the Procuring Authority is required to have in the contract management activities.
The structure and size of the team will depend on several factors that should be considered on a case-by-case basis:
• The size, geographic distribution and complexity of the project
• The scope and complexity of the service(s) being delivered, including its sector
• The complexity of the contractual arrangements
• The risks that have been retained by the Procuring Authority under the PPP contract, or are inherent to the Procuring Authority irrespective of what is agreed in the PPP contract, such as social risks and counterparty risks
• The Procuring Authority's positive obligations under the PPP contract
There are two broad approaches to contract management which play a role in determining the size and structure of the Procuring Authority's contract management team: active contract management and passive contract management. The appropriate approach will depend on the factors outlined above.