Optimising contract size and complexity is a key factor for effective contract management.
The PPP contract is relatively small compared to other contracts managed by the Procuring Authority, such as transmission lines which tend to cover vast areas. The Procuring Authority highlighted that the size of the contract in this particular case had the advantage of being less complex and therefore easier to manage and less resource intensive. The Procuring Authority sees optimal complexity of the contract as one of the contributing factors for effective contract management, and it has therefore put plans in place to scale down future PPP contracts as appropriate, to ensure more effective contract management.
Permitting can have a major impact on the construction duration, even for small-scale projects.
This small-scale electricity substation project offered many advantages from the ease of contract management point of view. However, the project still suffered more than six months of delay to the start of its operations as a result of the delays related to governmental permitting issues. The risk associated with governmental permits should not be underestimated on a project of any scale.
Annual training across a programme of PPP projects can be an effective way to deliver structured training to contract management teams.
There is an annual training programme provided by the Procuring Authority to its employees. The programme covers a wide range of skills considered key to successful management of PPP contracts. All the seminars, workshops and dedicated courses are provided by international market leaders and institutions such as the Council on Large Electric Systems (Cigré), universities and equipment producers.