Implementation – Managing PPPs
18.2 Who manages the contract?
Consideration must be given to how the contract will be managed
as early as possible in the procurement phase of the contract.
Identification of a dedicated contract manager from within
the municipality to supervise implementation on behalf of the
municipality is one of the key aspects of contract management.
The contract manager should be a part of the entire partnership
process from planning and organizing [Tool 3] all the way
the contract closure. If that is not possible, then another team
member should be given specific responsibility for considering
the emerging contract throughout the procurement phase
from the perspective of that contract’s
Ideally, the contract management team should start to take
up their respective posts during the procurement phase, so
that there is a seamless transfer of skills and experience
from procurement, through implementation and on to contract
management. In particular, the authors recommend that the contract
should include/ address the following issues.
- What is the form of the team required to manage the contract
(its size, skill set, roles and responsibilities)?
- What will be the contract change procedure (in case of contract
- What will be the performance monitoring arrangements and
the associated information requirements for that monitoring?
- What will be the mechanisms for problem solving and dispute
resolution [Tool 20]?
- What arrangements exist in the event of default or termination?
- What protection is there of the public sector’s ability
(right) to re-tender upon completion of the original contract?
As with all the other elements of the PPP,
it is essential that the individual or team managing
the contract has a clear understanding of the requirements
of the contract and the thought processes behind
those requirements. There is a danger that once the
PPP deal is signed, the project team will break up;
from then on, a full understanding of the contract
requirements and their underlying justifications
may be lost by the contracting authority.
One of the other possible pitfalls of contract management
is excessive interference by the municipal management
team into the details of the project. While an
in-depth knowledge of the details is important, the contract
should not undermine the performance goals
of the project and/or create confusion about accountability.