G. Evaluate the structure and resourcing of the contract management team on an ongoing basis and make adjustments as necessary

It is important to recognise the changing nature of the contract management workload throughout the life of a project. The changing responsibilities of the Procuring Authority are detailed in Section 3.1 (Transitions). The effect of this is that a contract management team needs to periodically re-assess the scope of the work required and whether it has adequate staff to fulfil the required tasks. Two key factors that change over time are risk and the frequency of issues arising.

For example, where a Procuring Authority is responsible for land acquisition for a highway project, which is completed over the course of the construction period. The risk and responsibility associated with this activity decrease over time, while others continue throughout the life of a project.

The frequency of issues is also relevant. Some activities are performed on a day-to-day basis, some on a periodic basis and others, while performed rarely and on an ad hoc basis, may have major implications on the PPP contract and require extensive resources from the contract management team (e.g. dealing with a large dispute or claim or a renegotiation).

The Procuring Authority should also scrutinise how well the Project Company's self-monitoring is working and alter its internal procedures accordingly. Where the Procuring Authority is not satisfied with the quality of the service being provided by the Project Company, it may be appropriate to increase its own level of monitoring. Some PPP contracts also give the Procuring Authority the right to increase its monitoring at the cost of the Project Company. Performance monitoring is detailed in Section 3.2 (Performance monitoring).

EXAMPLE

Increased responsibilities during design and construction

The I-495 Express Lanes project in the USA highlights the need to commit additional resources during peak production periods to meet contract management obligations. In that project, the Procuring Authority needed to commit appropriate resources throughout various phases of project delivery and increased resources during peak production periods (both design and construction). This helped to expedite progress and assisted in schedule recovery, resulting in opening the project 45 days ahead of schedule.

For more information, see the I-495 Express Lanes Case Study.