The size and structure of a contract management team will be dictated by several factors, including the level of obligations and risks taken on by the Procuring Authority and the overall complexity of the project. Where the Procuring Authority has taken on a high level of risk and has a significant number of obligations as part of the PPP contract, it must assume an active role in contract management. Where the risks and obligations retained by the Procuring Authority are fewer, the Procuring Authority may be able to take a more passive role, although its responsibilities should not be underestimated. With these considerations in mind, the Procuring Authority will need to determine what skills are required within the team, and what expertise can be brought in using external advisors or other government departments.

Section structure

This section provides a background to contract management team set-up in Subsection 2.1.1 (Background) and provides guidance on setting up the contract management team. The key elements of successful contract management team set-up are summarised below and discussed in detail in Subsection 2.1.2 (Guidance):

A.   Consider the scope of the Procuring Authority’s role in the management of the specific PPP contract

B.   Base the size of the contract management team on the nature of the project and the availability of external resources

C.   Ensure the Procuring Authority’s contract management team has an appropriate governance structure, and skillset and competencies required for the project

D.   Plan the set-up of the contract management team before financial close

E.   Centralise resources where there is a program of PPPs and benefits could be generated through synergies between different projects

F.   Use external consultants where appropriate and ensure transitions between consultants are managed effectively

G.   Evaluate the structure and resourcing of the contract management team on an ongoing basis and make adjustments as necessary

H.   Plan for staff turnover and ensure adequate procedures are in place to manage continuity of knowledge

I.   Consider setting up the contract management team in a way that mitigates the risk of a change in government or policy