CONTRACT CONTRACT CONTRACT ADMINISTRATION ADMINISTRATION - - PowerPoint PPT Presentation

HK – Institution of Engineers Slide 1 February 05 Michael Boswell – Michael Boswell & Associates

CONTRACT ADMINISTRATION CONTRACT CONTRACT ADMINISTRATION ADMINISTRATION

Basic Elements

HK – Institution of Engineers Slide 2 February 05 Michael Boswell – Michael Boswell & Associates

Background PPP - major undertaking - $, time and impact

◊ Variety of views among the players

• Objectives, processes and available resources
• Form of the contract and/ or relationship

◊ Each view provides

• Boundary conditions - series of ‘known/ givens’
• Intersecting ‘games’

◊ NEED professional judgement

HK – Institution of Engineers Slide 3 February 05 Michael Boswell – Michael Boswell & Associates

PPP combines Government

◊ Legislation ◊ Tax ◊ Accountability to the people

Private sector

◊ Ingenuity ◊ Flexibility ◊ Risk management

Community

◊ Access - use ◊ Pay ◊ Vote

HK – Institution of Engineers Slide 4 February 05 Michael Boswell – Michael Boswell & Associates

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?

HK – Institution of Engineers Slide 5 February 05 Michael Boswell – Michael Boswell & Associates

Project Management Office

Establish sense of urgency clear danger Develop broad based action keep moving, implementing Staff & operate In or out? Create guiding coalition powerful forces Develop vision & strategy focus The tale we tell Make change stick new PBO culture Manage the change short term wins broad based action consolidate gains Communicate the change vision tell the tale

Project Office

1/02/2005 - v8

HK – Institution of Engineers Slide 6 February 05 Michael Boswell – Michael Boswell & Associates

Form of contract and/or relationship

HK – Institution of Engineers Slide 7 February 05 Michael Boswell – Michael Boswell & Associates

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

HK – Institution of Engineers Slide 8 February 05 Michael Boswell – Michael Boswell & Associates

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

HK – Institution of Engineers Slide 9 February 05 Michael Boswell – Michael Boswell & Associates

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

No control (anarchy) Key results

• nly

Detailed monitoring

• f all activity

“... we can only afford so much contract administration.”

HK – Institution of Engineers Slide 10 February 05 Michael Boswell – Michael Boswell & Associates

Spaghetti and Meatballs

“Manage to contingencies”

HK – Institution of Engineers Slide 11 February 05 Michael Boswell – Michael Boswell & Associates

Levels/ layers of CA

Contractor Executive & Agency Executive LEGISLATION, CONTRACT & PROJECT PROTOCOL SYSTEM TO RESOLVE POLICY ISSUES SYSTEM TO REVIEW OPERATIONAL ISSUES Regular Meetings & Reviews Operational Instructions & Emergency Orders Handbook Contractor's Manager & Agency Managers Contractor's Staff & Agency Employees GENERAL MODEL FOR NORMAL DAY-TO-DAY OPERATIONS

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

CA and operations

HK – Institution of Engineers Slide 13 February 05 Michael Boswell – Michael Boswell & Associates

Some ‘one liners’ of CA

◊ Be careful what you wish for

• you just might get it

◊ If this is the answer

• what was the question

◊ The answer to how

• is why

◊ If two people keep agreeing

• one of them is redundant

◊ If two people keep agreeing

• at least one is redundant

◊ For any complex endeavour

• You cannot simultaneously control result, process &

resources

HK – Institution of Engineers Slide 14 February 05 Michael Boswell – Michael Boswell & Associates

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”