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Fundamentally, PPP will only be successful if the
private sector has the capabilities to add value to the delivery
of public services. Hence, PPP should only be applied to projects
where the private sector has the competencies to meet the service
standards required by Government or the public.
KEY ASPECTS OF WORKING IN PARTNERSHIP WITH A PPP PROVIDER
There are 3 key aspects of managing a PPP provider:
Contract Management
Performance Monitoring
Relationship Management
Contract management is the process that enables the PPP provider
to meet their contractual obligations in order to deliver the objectives
required from the contract. This continues throughout the life
of a contract and involves managing proactively to anticipate future
needs as well as reacting to situations that arise. In contract
management, KarpeDium
ensures that the respective roles and responsibilities set out in
the contract are fully understood and fulfilled to the contracted
standards so that value for money is delivered. Where contracted
standards are not fulfilled, the PPP provider would have to rely
on mechanisms established in the contract to rectify any unsatisfactory
performance. At KarpeDium,
Contract management involves aiming for continuous improvement in
performance over the life of the contract.
Performance Monitoring are specific activities
within the management of the PPP provider. It includes the day-to-day
monitoring of performance, assessing whether the contracted services
are delivered to the contracted standards, and evaluating the remedial
actions taken by the PPP provider when the performance standards
are not met.
Managing the relationship with the PPP provider
is the most important part of the supply chain. Suffice to say here
that given the long tenure of a PPP project and the “partnership”
nature of a PPP project where the PPP provider and the Owner are
mutually dependent, the relationship management of the PPP provider
is different from that of a conventional project.
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KARPEDIUM
