4.1.11 The foundations for contract management, performance monitoring and relationship management have to be laid in the stages before contract award, including during the procurement process. This fundamentally means getting the PPP contract right.
4.1.12 Getting the PPP contract right is a very important aspect of managing the PPP provider. An ambiguous contract or a contract that is less than comprehensive could lead to disputes that could arise years later, when the personnel involved at the beginning of the PPP project might no longer be around.
4.1.13 Indeed, given the long tenure of the PPP contract, the personnel and stakeholders involved in the PPP project at the GPE and the PPP provider are likely to change over the contract life. It is thus important that the contract itself stipulates clearly the contractual rights and responsibilities of the GPE and the PPP provider. Please see section 3.3 and 3.4 for guidelines on the issues that the PPP contract should address.
4.1.14 Good preparation is essential to deriving a sound and robust contract. An accurate assessment of needs by the GPE helps create a clear output-based specification focused on services to be delivered, not an asset or facility to be built. The procedures for selecting the PPP provider should focus on getting value for money and finding the right PPP provider who can deliver the contracted requirements over the contract life. The contract should cover pertinent aspects such as allocation of risk, the quality of service required, and procedures for variation of service scope and dispute resolution. Improvements in price, quality or service should be, where possible, built into the contract terms.