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Module 4 -18 Managing PPPs

18.1 Why is contract management important?
18.2 Who manages the contract?
18.3 What are the roles of stakeholders during contract management?
18.4 Renegotiation
Further Guidance

Key Questions:

Why is contract management important?
Who manages the contract?
What are the roles of stakeholders during contract management?
Why to conduct renegotiation?

Related Tools:

4 Collecting Information
6 Defining Objectives

Implementation – Managing PPPs

18.1 Why is contract management important?

A significant and often, in the past, neglected stage of a PPP arrangement is the contract management phase. It is an essential, although time-consuming and potentially costly element, of any successful PPP.

Experience acknowledges that while significant consideration is given to the tender, procurement, evaluation and contract negotiation areas of PPPs, rather less attention is paid to contract management. At the same time, contract management skills have tended not to be widespread in the public sector.

While performance can be driven through appropriately structured performance incentives or disincentives, sound contract management arrangements are required to ensure performance standards meet – and preferably exceed – expectations throughout the contract life. Without such arrangements in place, what may have been a beneficial project for a government could quickly become an even more costly exercise than if traditional procurement methods had been adopted in the first place.

Effective contract management will, in most circumstances, secure the interests of the public sector and the community by the development of sound working relationships with the service provider. This will allow services to be tailored continually to the current needs of the users in ways that are mutually beneficial to both parties.



  S T A R T P A G E  
  Module 1 - Before PPPs  
  01-Starting Out  
  02-Strategic Planning  
  Module 2 - Preparation Stage  
  03-Planning & Organising  
  04-Collecting Information  
  Module 3 - PPP Development Stage  
  05-Identifying Constraints  
  06-Defining Objectives  
  07-Defing Parameters (Scope)  
  08-Establishing Principles  
  09-Identifying Partners  
  10-Establishing Partnership  
  11-Selecting Options  
  12-Financing (Investment)  
  13-Financing (Cost Recovery)  
  14-Preparing Business Plans  
  15-Regulating the PPP  
  Module 4 - Implementation  
  16-Tendering & Procurement  
  18-Managing PPPs  
  19-Monitoring & Evaluation  
  20-Managing Conflict  
  21-Capacity Development  
  Contact Information