Contract Management & Performance Monitoring Flashcards
7 cards from real CP3P practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Management & Performance Monitoring flashcards as text
In an availability-payment PPP, what is the primary consequence when an asset is deemed 'unavailable' under the contract definitions?
Answer: A deduction is applied to the unitary payment
Unavailability triggers payment deductions under the payment mechanism, incentivizing the private partner to restore service quickly.
Which document typically sets out the detailed Key Performance Indicators (KPIs) and measurement methods in a PPP contract?
Answer: The output specification and payment mechanism schedules
Output specifications define required service levels, and the payment mechanism schedule links KPIs to payment.
A private partner's self-reported performance data shows full compliance, but users complain of frequent failures. What should the contract manager do first?
Answer: Conduct an independent audit or spot check of performance data
Contracts usually grant the authority audit rights to verify self-monitoring results before taking remedial action.
What is the main purpose of a 'ratchet' mechanism in PPP performance regimes?
Answer: To escalate deductions for repeated or persistent failures
Ratchets increase penalties when failures recur, discouraging chronic underperformance.
Which of the following is generally treated as a 'relief event' in a PPP contract?
Answer: An unexpected fire or flood not caused by the private partner
Relief events are uninsurable or external events that excuse performance delays without compensation, such as fire or flood.
A contract management manual for a PPP should primarily be developed by the procuring authority at what stage?
Answer: Before or at financial close, prior to operations
Best practice is to prepare the contract management manual before financial close so the team is ready from day one.
Which of the following best describes 'warning notices' in a PPP performance regime?
Answer: Formal notices accumulating toward default thresholds for repeated poor performance
Warning notices track persistent underperformance and can eventually lead to step-in or termination rights.