• Body of Knowledge:
    Structuring and Drafting the Tender and Contract
    9.2 Performance Requirements and Performance Management
    Performance requirements may be considered a part of the broader concept of "technical requirements" or "technical specifications", which in general terms refers to the specifications in the contract for what is requested of the private partner in terms of quality and/or quantity. Performance...
  • Body of Knowledge:
    Strategy Delivery and Commissioning
    9.2. Dealing with Extension of Time in the Construction Phase
    The private partner will have a limited set of events for which it can claim to: Extend the completion date by which the asset must be created, commissioned, and operated Extend the expiry of the PPP contract (effectively an extension to the period in which it can earn revenue from operating the...
  • Body of Knowledge:
    Structuring and Drafting the Tender and Contract
    9.7 Contract Changes
    As noted, the contract must have flexibility built in to enable changing circumstances to be dealt with as far as possible within the contract. In this sense, the contract should consider and permit certain potential changes (which may be subject to limits in quantity or the law may provide those...
  • Body of Knowledge:
    Operations and Handback
    9. Managing Expiry, Default, and Early Termination Processes
    Early termination of a PPP contract is truly a last resort and must follow a whole range of processes, commencing with an act of default by one of the parties or some continuing force majeure. From a contract management perspective, the focus should be on avoiding termination by managing...
  • Body of Knowledge:
    Structuring and Drafting the Tender and Contract
    9.3 Contract Breaches, Penalty System, and Events of Default
    Section 9.2 has shown how payments are linked to service performance through availability payment mechanisms, so that deductions or abatements are made from the payments commensurate with any failure to meet set service standards or target levels of service. The price paid is therefore adjusted to...
  • Body of Knowledge:
    Structuring and Drafting the Tender and Contract
    3. Summary Description of Main Tasks to be Carried Out in the Structuring Phase
    3.1 Establishing the Project Team, Incorporating Advisors and Finalizing the Project Management Plan for this Phase It may happen that the project team was established before appraisal, contracting advisors to handle both appraisal and the structuring and drafting of the tender package. Otherwise...