4.1.4 There are 3 key aspects of managing a PPP provider:
a. contract management;
b. performance monitoring; and
c. relationship management.
4.1.5 Contract management is the process that enables both the GPE and the PPP provider to meet their contractual obligations in order to deliver the objectives required from the contract. This continues throughout the life of a contract and involves managing proactively to anticipate future needs as well as reacting to situations that arise. In contract management, the GPE ensures that the respective roles and responsibilities set out in the contract are fully understood and fulfilled to the contracted standards so that value for money is delivered. Where contracted standards are not fulfilled, the GPE would have to rely on mechanisms established in the contract to rectify any unsatisfactory performance. Contract management may also involve aiming for continuous improvement in performance over the life of the contract.
4.1.6 Performance monitoring are specific activities within the management of the PPP provider. It includes the day-to-day monitoring of performance, assessing whether the contracted services are delivered to the contracted standards, and evaluating the remedial actions taken by the PPP provider when the performance standards are not met.
4.1.7 Managing the relationship with the PPP provider is covered in details in Section 4.3. Suffice to say here that given the long tenure of a PPP project and the "partnership" nature of a PPP project where the PPP provider and the GPE are mutually dependent, the relationship management of the PPP provider is different from that of a conventional project.
4.1.8 The players in each of the above aspects may be different, e.g. in the case of a PPP school, the principal would be responsible for performance monitoring, while MOE might be in charge of managing the contract according to the inputs from the principal.