CONTRACT CONTRACT CONTRACT ADMINISTRATION ADMINISTRATION - PowerPoint PPT Presentation

HK – Institution of Engineers CONTRACT CONTRACT CONTRACT ADMINISTRATION ADMINISTRATION ADMINISTRATION Basic Elements Slide 1 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers Background � PPP - major undertaking - $, time and impact ◊ Variety of views among the players o Objectives, processes and available resources o Form of the contract and/ or relationship ◊ Each view provides o Boundary conditions - series of ‘known/ givens’ o Intersecting ‘games’ ◊ NEED professional judgement Slide 2 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers PPP combines � Government ◊ Legislation ◊ Tax ◊ Accountability to the people � Private sector ◊ Ingenuity ◊ Flexibility ◊ Risk management � Community ◊ Access - use ◊ Pay ◊ Vote Slide 3 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers Project processes � Scoping Paper ◊ What is the nature of the business - the required result? � Registration of Interest - (RoI). ◊ Who could we do business with to deliver the result? � Request for Tender - (RfT): ◊ Who is the best to do business with to deliver the result? � Contract formation. ◊ What are the terms for service delivery/ receipt? � Contracted services commence - commissioning. ◊ How do we change from one service provider to another? � Performance reviews. ◊ How do we ensure results stay on track during the term? � Preparation for end of contract. ◊ What do we want after the end of the contract? Slide 4 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers Project Management Office Establish sense of urgency clear danger The tale we tell Create guiding coalition powerful forces Make change stick new PBO culture Develop vision & strategy focus Project Office Staff & operate 1/02/2005 - v8 In or out? Communicate the change vision tell the tale Develop broad based action keep moving, implementing Manage the change short term wins broad based action consolidate gains Slide 5 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers Form of contract and/or relationship Slide 6 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers Philosophy of CA � Contract administration is a strategic issue � Contract is with proven service provider � Contract is for results to be achieved � Need an audit trail for decisions � Balance requirements for ◊ minimum surprises - as against - ◊ minimal bureaucratic administrative overheads � Develop staff � Maintain a proper approach to probity � Maintain currency of the contract “Be empathetic. Adversity costs dearly Slide 7 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers Essential elements of CA � Act for the Principal ◊ Deliver contract objectives in right way � Governance ◊ Consider reports. Inspect operations and facilities ◊ Maintain currency of the contract ◊ Proper ‘interpretation’ and ‘amendment’ ◊ Authorise financial arrangements � Probity ◊ At all levels and on all occasions � Issues and disputes ◊ Act fairly and ensure that the provisions of the contract are complied with � Also ◊ Media and ministerial inquiries ◊ Reinterpret contract to maintain currency of objectives Slide 8 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers Forms of CA � Ranges from ◊ no control to ◊ key results only to ◊ detailed monitoring of all activity � Normal operational reviews continue � Geometric rise in cost 0 No control Key Detailed (anarchy) results monitoring only of all activity “... we can only afford so much contract administration.” Slide 9 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers Spaghetti and Meatballs “Manage to contingencies” Slide 10 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers Levels/ layers of CA LEGISLATION, CONTRACT & PROJECT PROTOCOL SYSTEM TO Contractor Regular RESOLVE Executive & Meetings & POLICY Agency Reviews ISSUES Executive Operational SYSTEM TO Contractor's REVIEW Manager & Instructions & OPERATIONAL Agency Emergency Orders ISSUES Managers GENERAL Contractor's MODEL FOR Staff & Handbook NORMAL Agency DAY-TO-DAY Employees OPERATIONS Slide 11 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers CA and operations Slide 12 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers Some ‘one liners’ of CA ◊ Be careful what you wish for o you just might get it ◊ If this is the answer o what was the question ◊ The answer to how o is why ◊ If two people keep agreeing o one of them is redundant ◊ If two people keep agreeing o at least one is redundant ◊ For any complex endeavour o You cannot simultaneously control result, process & resources Slide 13 Michael Boswell – Michael Boswell & Associates February 05

HK – Institution of Engineers CA as element of strategy/ policy � Clear and stable purpose – flexible process ◊ Negotiation ◊ Always have a ‘Plan B’ - ROCS ◊ Balance – objectives & detail ◊ Retain corporate knowledge � Know and understand the intersecting games ◊ Be informed and educated ◊ Be alert � Metrics ◊ AIs, PIs, Survey, Review, Evaluation & Price review � Bullies “CA is not a spectator sport” Slide 14 Michael Boswell – Michael Boswell & Associates February 05