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
Which of the following is a common trigger for the procuring authority's right to terminate for private partner default?
Answer: Persistent breach exceeding a specified deduction or warning-notice threshold
Termination for default is reserved for serious or persistent failures, often defined by cumulative deduction or warning thresholds.
Upon termination for private partner default, how is compensation commonly calculated in many PPP frameworks?
Answer: Based on the market value of the contract or a percentage of senior debt
Default compensation is often based on retendering market value or a portion of senior debt, protecting lenders while penalizing equity.
What is the main reason PPP contracts include refinancing gain-sharing clauses?
Answer: To allow the authority to share in windfall gains from improved financing terms
Refinancing gain-sharing ensures the public receives part of the financial benefit arising after project risk declines.
Which records are MOST important for a contract manager to keep to defend the authority's position in a future dispute?
Answer: Contemporaneous written records of notices, performance data, and decisions
Contemporaneous documentation provides the evidence base needed in expert determination or arbitration.
A change of control in the project company's shareholding during operations usually requires what?
Answer: Prior consent of the procuring authority as set out in the contract
Most PPP contracts restrict equity transfers, especially early on, and require authority consent to protect deliverability.
Which type of PPP monitoring relies on end users reporting service failures via a helpdesk?
Answer: Reactive or user-reported performance monitoring
Helpdesk-based reporting captures failures as users experience them and feeds into deduction calculations.
Why is it important for the procuring authority to adequately resource its contract management team throughout the PPP lifecycle?
Answer: Because under-resourced oversight risks unenforced obligations and lost value for money
Insufficient authority capacity leads to weak enforcement, missed deductions, and erosion of the value-for-money case.