UNECE PPP Contract Management

Transcription

1 UNECE PPP Contract Management How To Manual PPP Days February 2012, Geneva Developed by Dr David Dombkins CEO Complex Program Group Editor in Chief, UN PPP Toolkit

2 PPP Contract Management How-To Manual CONTENTS OF THE MANUAL: A.PPP Contract Management Policy B.Contract Management Guide C.Contract Management Organisation Design D.Contract Management Strategy, Manual, and Plan The Contract Management Manual was developed by Professor Dr David Hillary Dombkins (UNECE PPP Toolkit Editor-in-Chief) as an unpaid contribution to the UNECE PPP program, and is based on his experience in the strategic design and management of PPP projects. The UNECE Contract Management Manual incorporates input from governments and leading multi-lateral institutions including: United Kingdom, Australia, Egypt, South Africa, United States, Kingdom of Saudi Arabia, World Bank, Asian Development Bank, and the European Commission.

3 Central Aims of PPP Contract Management How-To Manual - obtain the services specified in the output specifications and ensure ongoing affordability, value for money, and appropriate risk transfer. - Whole of Project Life Governance, Journey Management, Sustainability, and Risk Management - limit the impact of the Bias of Optimism and manipulations in project business case & approvals. - provide a formal and independent Gateway review process over the project lifecycle. - independent, competent, and reliable advice and management (separate from transaction team) - Manage Change (policy, technical, market, social, financial, sustainability, Green Economy, etc)

4 Planning for PPP Contract Management The contract manager is just as important as the transaction advisor CM is a system CM Policy CM Strategy Reward design (KPI) and Reporting CM Organisational Design CM Team Design CM Competences and Training

5 Life Cycle based Contract Management - incorporates US Government Best Practice Guide for Managing Complex Systems. - each phase needs to be managed differently - the processes must be designed to manage change over the lifecycle

6 The Contract Management How-To Manual provides detailed guidance using three clusters.

7 Organisational Design and CM Competences Based on Best Practice for Governance of complicated/complex projects Uses Integrated Teams Uses Partnering Integrates records management, asset and configuration management, performance measurement, reporting, issues management, and change management systems Defines key processes, tools, and systems Specialist competences and training

8 Lessons Learned Case Studies AUD$3.6 billion Rail Car program failure Structure driven by financial engineering and not outcomes Lack of an independent contract manager (Bias of Optimism) Complicated financial structure stops effective contract management (turbulence absorbs all the energy) Contract structure resists change Similar to failure in other multi billion $ PPP projects Cross Sydney Tunnel, Sydney Airport Rail Link, Brisbane Rail Link, and Spencer St Station Successful PPP Projects are using strategies and contracts that support whole-of-life contract management, and are not driven solely by the financial model

9 Managing Change - Life Cycle based Contract Management Start conditions determine the project whole-of-life outcomes How much change will occur over the project life cycle? (policy, technical, market, social, financial, sustainability, Green Economy, etc) Design the project contract and CM system to deal with change Complicated financial deals often drive complicated CM systems that in turn drive PPP projects to failure Projects need competent and robust Transaction Advisors and Contract Managers that operate as a Dialectic Plan for CM from the beginning

10 INTERNATIONAL REVIEW PROCESS The UNECE is seeking international review of the draft UNECE PPP Contract Management Manual. Please contact the UNECE PPP Editor in Chief (Dr David Dombkins) for a copy of the Draft PPP Contract Management Manual by at: [email protected] Next Module PPP Project Appraisal and Evaluation (including Sustainability and Green Economy)