10. Dealing with the Private Sector's Underperformance and Non-Compliance during the Construction Phase

Monitoring the performance of the private partner is a primary function of the contract management team of the government. In most PPPs, the performance monitoring and reporting is done by the private partner, making the function largely one of assurance that the reporting is accurate and auditing performance measures when it is not. During the term of the PPP contract, it is almost certain that the private party will not meet the required standards and not comply with the specification in the PPP contract. This is termed “non-performance” even though some of the services may have been partly provided or have partly met the specification.