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PPP Contract Management Report (Headline 1)

Explore critical contract management issues, such as stakeholder management, transitions, performance monitoring, refinancing, renegotiation, disputes, and insolvency.

Relationship between the CA and Private Party (Headline 2)

The public and private parties are co-located in a single location for the operational management of this contract. This has helped greatly in building a strong relationship between the parties. The day to day interactions acted both as a deterrent to hostile behaviour and facilitator in building string relationships. The nature of the relationship has matured to the extent that both parties continued to operate amicably even after a long dispute.

Team Set-Up and Staffing (Headline 3)

The local council team was hired specifically for this project, and members of the contracting authority's team who were involved in the procurement process have remained into the operational phase. On the contrary, all staff on the private side who worked on bid moved on once the contract was signed.

At the moment, the contracting authority has 4 employees working on the project. This was explained to be adequate, but additional support would be useful although unlikely to be affordable. For example, the Contracting Authority would prefer to have employees with financial expertise to monitor the contractor's finances and debt repayment management. The Contracting Authority did express the intention to hire advisors to perform this task if needed as it would be time consuming for the existing staff.

The Contracting Authority needs to be careful not to duplicate the monitoring of Project performance. If the self-monitoring system and other independent monitoring through third parties is set up properly then there may be some duplication if additional monitoring is carried out by the Contracting Authority.

Management of communications and data sharing (Bold)

From the three councils in the joint venture, Reading Borough Council acts as the administrating authority. Thus, this council takes up the role of leading communications with the Project Company and stakeholders. The current strategy for public outreach is through social media, which has proven to reach more people at a lower cost than the previous arrangement of scheduling public meetings.

As for data sharing, both parties started with a shared information platform. However, it proved to be not practical. The database did not work as it was hoped from the outset. The remedy, while not practical to large scale projects, was to take advantage of the co-location set-up and work together instead of using a virtual space.

Project Inception