-
Body of Knowledge:
Strategy Delivery and Commissioning
In troubled projects, financial restructuring may be considered. A method of dealing with a project in financial difficulty is for the PPP contract to be auctioned by the government, whereby a new bidder will pay the actual worth of the project and then continue to provide the service. This is...
-
Body of Knowledge:
Strategy Delivery and Commissioning
The cost of complying with a law that is current or foreseen at the time of entering into the PPP contract is usually built into the price that the private partner bids in order to provide the services. It may, however, not be possible for the private partner to price specific costs that may arise...
-
Body of Knowledge:
Strategy Delivery and Commissioning
9.1. Importance of Claims Management
A claim in the context of PPP contract management is somewhat of a misnomer. Well-structured PPP contracts allow for specific consequences for specific failures by one party to meet its obligations to the other party. These failures normally give rise to a...
-
Body of Knowledge:
Strategy Delivery and Commissioning
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:
Strategy Delivery and Commissioning
Force majeure events are a limited set of events which may arise during the term of the PPP contract through no fault of either party. These are best managed by the private partner. They are more severe than relief events, will typically last longer and may result in termination of the PPP contract...
-
Body of Knowledge:
Strategy Delivery and Commissioning
A very strict process of processing claims, as listed below, must be followed.
· The government must be notified of all claims within a limited period of time after the event. Claims submitted long after the event become impossible to evaluate, and the private partner will struggle to show how it...
-
Body of Knowledge:
Strategy Delivery and Commissioning
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...
-
Body of Knowledge:
Strategy Delivery and Commissioning
When dealing with under-performance and non-compliance in the Construction Phase, the issue is not the standard of services provided but rather the time taken to complete the asset and the quality of the asset on completion. In general terms, the private partner is incentivized to bring the asset...
-
Body of Knowledge:
Strategy Delivery and Commissioning
In PPPs, liquidated damages are the preferred remedy for late service commencement. Liquidated damages are a payment representing a genuine pre-estimate of the actual losses or damages suffered if the private partner fails to achieve service commencement on time. The events giving rise to...
-
Body of Knowledge:
Strategy Delivery and Commissioning
-
Body of Knowledge:
Strategy Delivery and Commissioning
Issue management usually comes into effect when significant risks arise or materialize. The PPP contract management manual should include issue management procedures that deal with irregularities and mitigate the issues that lead to risk materialization.
Conflict and issues typically occur within a...
-
Body of Knowledge:
Strategy Delivery and Commissioning
Dispute circumstances are intrinsic in any PPP construction projects and could influence the success and failure of projects, thereby generating additional costs for all parties[27] [28]. PPP construction project issues, concerns, and disputes occur as a result of numerous factors such as technical...
-
Body of Knowledge:
Strategy Delivery and Commissioning
-
Body of Knowledge:
Strategy Delivery and Commissioning
The importance of knowledge management is two-fold, firstly to ensure the continuity of knowledge throughout the life of the project, and secondly to assist the contract management team in meeting legislative and contractual requirements.[31]
12.1.1. Developing a Knowledge Management Strategy...
-
Body of Knowledge:
Strategy Delivery and Commissioning
The life span of PPP projects is extensive and it is rare that the same staff and personnel will see the project through to the conclusion. Therefore, it is likely that the personnel involved in the management of the contract is going to change several times throughout the life cycle of the project...
-
Body of Knowledge:
Strategy Delivery and Commissioning
Name of Document
Authors/Editors and Year
Description
http link
General Guidance on Contract Management and Construction Phase Management
4ps – A guide to Contract Management for PFI and PPP Projects
4ps in collaboration with Mott MacDonald, Public Private Partnerships...
-
Body of Knowledge:
Project Identification and PPP Screening
The PPP process is composed of a number of phases: identifying the project and screening it as a PPP, appraising the project, structuring the procurement process and the contract, tender and award, and finally managing the contract.
This process requires a significant amount of time and resources....
-
Body of Knowledge:
Project Identification and PPP Screening
The starting point of this phase and of the full PPP process is the same starting point as for any procurement of public goods and services process: identification of the need.
There are some steps in the Screening Phase which includes: project identification (entry routes), scope and preliminary...
-
Body of Knowledge:
Project Identification and PPP Screening
The first stage of project identification is the identification of a public need[2]. Projects are not an end in themselves. They are enablers for the government to meet its service delivery obligations. Hence, the government needs to understand what the problem is that it is trying to solve before...
-
Body of Knowledge:
Project Identification and PPP Screening
A government may face a situation in which there is no room in the budget (either the current budget or a future budget) to procure all potential projects/government-pays PPPs, regardless of whether all those projects respond to relevant needs of the society in an efficient way, creating public...
