SOFT FACTORS IN MANAGING THE RELATIONSHIP

4.3.15  Three key factors to a successful relationship are as follows:

a)  Mutual respect and understanding - The right attitudes and behaviours, based on mutual respect and understanding rather than an adversarial approach, should be encouraged. While the PPP contract underlies the basis for the relationship, mutual respect and understanding is necessary for the long-term partnership under PPP to work. Such mutual respect and understanding cannot be mandated within the PPP contract. Ultimately, it has to be built through actions and behaviours, rather than assertions, and is tested when problems and disagreements arise;

b)  Open communication - Open communication does not mean that the parties must share all information relating to the project. However, a party should share an item of information if there is no good public interest, commercial or legal reason not to share it, and sharing the information would enhance the relationship. The three primary levels of communication in a contractual arrangement are operational (end users/technical support staff), business (contract manager and relationship manager on both sides), and senior (senior management/board of directors). An important point is that the arrangement should be managed in such a way that these levels of communication are preserved even when problems arise For example, if an end user feels that the service is not being delivered to the required standards, he should refer this to the contract manager, who will liaise with the PPP provider's management. It might not be appropriate for the end user to liaise directly with the PPP provider's management;

c)  Recognition of mutual aims - The GPE and the PPP provider must approach the project as a mutually beneficial arrangement between them. There should be set procedures for raising issues and handling problems, so that they are dealt with as early as possible, and at the appropriate level at both sides.