4.3.6 First, typically, the PPP contract should set out the management structures and the formal communications channels that will be put in place to manage the following aspects of the relationship between the GPE and the PPP provider:
a) Strategic decisions - setting and managing strategic direction, identifying opportunities for innovation, agreeing and implementing policies, managing change;
b) The service - communication between the GPE and the PPP provider at the operational users' level on the delivery of services, day-to-day service monitoring, small scale change and identifying opportunities for improvements to service delivery; and
c) The contract - communication between the GPE contract management and the PPP provider for the overall management of the contract and dealing with major changes to the contract.
4.3.7 Second, consistent communication through the levels is important. Otherwise the differences in perspective may mask the problems in the PPP relationship. For example, even where senior management regards the relationship as successful, serious disagreements and disputes may arise and the relationship deteriorate at the middle management level.
4.3.8 Third, the formal point of contact between the GPE and the PPP provider should be identified. The contract manager will be the point of contact for the GPE. Throughout the life of the PPP project, the contract manager has the responsibility of protecting the GPE's agreed contractual position and ensuring that the agreed allocation of risk is maintained and that value for money is achieved.
4.3.9 A crucial role for the contract manager is to try to prevent disputes from arising by preventative actions. The procedures for liaising with the PPP provider and the maintenance of agreed records of performance will help to resolve problems before they escalate. To minimize the costs of dispute resolution through court settlement, an alternative formal dispute resolution procedure is necessary. The PPP contract should specify the procedure for handling disputes.
4.3.10 Fourth, the long tenure of a PPP project can pose continuity problems. In most cases, the initial contract management team will not be present till the end of the PPP contract. Contract management staff are likely to change several times throughout the life of the PPP contract. Effective succession planning is therefore important to ensure that the good working relationship and project understanding are maintained when new staff take over. Well-managed project role handover between incoming and outgoing personnel (with appropriate induction and exit procedures) can help in ensuring that the good working relationship extends throughout the life of the project and beyond the tenure of the individuals responsible for managing each side of the relationship.
4.3.11 Fifth, both the GPE and the PPP provider should take steps to monitor the relationship. They should put in place means to assess (and thus means to improve) the quality of the working relationship and management processes. This will be valuable in highlighting aspects that are perceived to be working well and those that require attention. For example, attendance by representatives at meetings from both sides can be monitored through the minutes of meetings. If attendance by one side's representatives falls away, the other side should consider whether this indicates that the relationship between the two sides is losing strength, or that the meeting is not an effective communication and management forum.
4.3.12 Finally, the management of the relationship depends on the nature of the project, the services to be provided, and the extent to which the GPE's requirements change over time. Particular care should be paid to the beginning years of the project when the risk of problems is likely to be the highest. This may require additional resources for a limited period.