Independent monitors are an important tool for managing contractual obligations and handling dispute resolution. The agreement to place the responsibility of actually conducting measurements with an independent, disinterested third party can reduce friction between partners and ensure a level playing field.
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CASE STUDY
Lesotho National Referral Hospital
We have already seen how the highly-specific metrics used in the Lesotho case offered little room for interpretation, assuring that government and private-sector partners were in agreement about the success of the partnership. But we have not yet discussed another crucial element of the Lesotho Hospital case study-the use of an independent monitor for assessing success.
Each quarter, the independent monitor for the PPP agreement would assess performance against the full set of performance indicators, and then subtract any relevant deductions. (Except those that the Ministry of Health elected to waive due to evidence of a good-faith effort.) Placing the responsibility for both measuring the indicators and calculating the deductions on an independent monitor avoids accusations of bias on the part of either partner and builds a strong foundation of trust between them.
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