Successful projects generally recognise the importance of timely resolution of day-to-day operational issues through the involvement of relevant representatives from the Procuring Authority and Project Company, and high-level effective decision-making on strategic matters which determine the future of the project. The latter is required less frequently but must include all relevant stakeholders from the public and private sector side, and not just the respective Project Company and Procuring Authority representatives.
It is common for the Procuring Authority and Project Company to discuss operational issues at regular meetings, though the frequency may vary depending on the project from weekly to quarterly.
The relationship between parties may also operate at different levels. Parties from both sides involved in the day-to-day running of the PPP contract should communicate frequently on operational matters, in both a formal and informal context.
Conversely, senior management may limit communication to strategic questions and other major issues and may communicate in a more formal way. There should be a clear hierarchy regarding the importance of issues dealt with by the Procuring Authority contract management team. It needs to distinguish between everyday operational management issues (ordinary issues which are monitored on a regular basis), and strategic issues with material commercial implications, which are discussed periodically or as the need arises.
Specific circumstances may warrant more frequent meetings, or meetings attended by specific additional representatives (e.g. to settle disputes). Disputes are detailed in Chapter 4 (Disputes).
EXAMPLE Frequency of meetings for different projects In the Gautrain Rapid Rail Link project in South Africa, important issues could be raised during weekly meetings between key representatives. In the Port of Miami Tunnel project in the USA, weekly meetings were held, which included the Procuring Authority, the Project Company and the construction contractor, as well as representatives from city and county governments. In other projects, meetings take place on a monthly basis, and in the Brabo I Light Rail project in Belgium, meetings were held quarterly. The Procuring Authority for energy projects in Brazil has recently introduced quarterly contract management meetings for all its projects. For more information, see the Gautrain Rapid Rail Link Case Study, Port of Miami Tunnel Case Study and the Brabo I Light Rail Case Studies. |
EXAMPLE Frequency of meetings to settle disputes One case study in a developed market identified the use of a 'chairmen's meeting', which included representatives from the Procuring Authority, the Project Company, the construction contractor and the operations contractor during a time of ongoing disputes. These meetings took place for six months on a fortnightly basis and successfully enabled the resolution of many issues. |