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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

  1. Approximately how long before contract expiry should a procuring authority typically begin handback planning and condition surveys?

    Answer: Several years before expiry, often 3-5 years

    Handback surveys several years in advance allow time to identify and fund required renewal works.

  2. What is the purpose of a handback reserve account or retention in a PPP?

    Answer: To secure funds for meeting handback condition requirements

    A handback reserve or retention ensures money is available to bring the asset to required condition at expiry.

  3. Which risk is most commonly retained or shared by the public authority rather than transferred fully to the private partner?

    Answer: Change in law specifically targeting the project

    Discriminatory or specific change in law is usually a public risk because the private party cannot control or price it.

  4. Which approach best supports an effective PPP contract management relationship over a 25-30 year term?

    Answer: Structured governance with regular meetings, clear escalation, and documented decisions

    Structured governance and documented communication maintain partnership and reduce disputes over the long term.

  5. When a dispute arises under a PPP contract, which step usually comes first in the dispute resolution procedure?

    Answer: Amicable negotiation between senior representatives

    Most PPP dispute clauses are tiered, starting with negotiation before expert determination, adjudication, or arbitration.

  6. In a user-fee (demand-risk) concession, what is the authority's primary monitoring focus compared to an availability-payment PPP?

    Answer: Compliance with tariff rules, service standards, and concession obligations

    In user-pay concessions, revenue comes from users, so oversight focuses on tariffs, service quality, and contractual compliance.

  7. What is 'benchmarking' or 'market testing' in a long-term PPP contract?

    Answer: Periodic review of soft-service costs against market rates to adjust pricing

    Benchmarking and market testing periodically realign prices for services like cleaning or catering with current market value.