ToolkiT for Public-PrivaTe ParTnershiPs in roads & highways
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module 5 : imPlemenTaTion and moniToring
uPdaTed march 2009
Contract Management Plan
The Contract Management plan must be prepared by the Contracting Authority and agreed
by contract signing. Its essential elements include:
• The agreed partnership approach to Contract Management.
• Ensuring service delivery management.
• PPP agreement administration.
• Key challenges and tasks of the PPP Contract Management.
• The Contract Management Plan.
• Roles and responsibilities of the contracting agency and Concessionaire.
• It is essential that the contracting agency compiles a document which sets out
the responsibilities and obligations of the service provider (Concessionaire) and
the contracting agency itself. Where appropriate, the arrangements should be
time bound.
The bases of these arrangements will be the provisions in the contract covering service
delivery and payments. The main arrangements in the Contract Management Plan will
include:
• Clearly defined outputs, performance levels and objective information requirements.
• Penalties in case of default.
• Roles and responsibilities in monitoring and information provision.
• Commencement and other key dates of activities.
• Cost bearing agreement for all Contract Management activities.
• Reporting of results arrangements.
• Dates and service releases in specific sectors.
• Payment mechanisms.
• Mechanisms for benchmarking and testing where relevant.
• Managing change mechanisms e.g. changes in law, bidding, control etc.
• Mechanisms for problem solving and resolving disputes.
• Contingency arrangements in case of failure or default.
• Rights of the contracting agency.
• Other as may be necessary for particular projects management with stakeholders.
• On contingency plans for dealing with emergencies.
• Frameworks for independent auditing.
• Public Consultation Needs.
The overall aim should be to develop a framework in which the contracting agency and
the concessionaire can work in partnership together. The Contract Management plan
should not be too complex in order to maximize its effectiveness and avoid costly and
difficult to enforce activities.
There are generally 3 stages in the development of Contract Management:
• Procurement Stage: Rules are established for the life of the Contract.
