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“We understand this frustration and recognise that in some cases it is not in the interests of either the client or the contractor to set the performance and scope standards too high and the price too low.
“Nevertheless, we continue to expect public sector bodies to maximise value for the public and taxpayers when managing existing contracts.”
Cote said the new PPP framework must “recognise that contractual risk allocation can incentivise proactive and effective risk management, but there are risks that we may not be able to transfer effectively”.
Rather than requiring the public sector to bear some of the risk, the new PPP framework will put more effort into pre-procurement planning to reduce uncertainty in projects.
“All parties should be accountable and willing to take responsibility, having agreed reasonable time, cost, scope and performance parameters. We are committed to taking steps to reduce the cost and time required for the procurement process and providing clear guidance on situations where financial contributions may be required to offset the costs of the procurement process,” he said.
As part of the PPP reboot, the government will ensure people working in the public sector of the partnership have better skills and more resources, Court said. They will be supported by: The new National Infrastructure AgencyInfrastructure Minister Chris Bishop made the announcement yesterday.
This is a commitment to enhance the capacity of the public sector when engaging in PPPs. “We expect excellent performance from contractors and contractors should expect the same from their clients,” Court said.
In addition to restarting public-private partnerships, the government is also looking at strategic leasing, meaning that the government ultimately does not need to own certain assets, Cote said.
The new PPP framework comes as the government continues its work to replace the Resource Management Act (RMA), which Mr Court said needed to be replaced because it was complex and hindered development.
“We can’t continue to think that every activity requires consent and that every consent requires reinventing the wheel in terms of the conditions that are appropriate to apply, when most things have been done before.”
He said the new system, when implemented, would restore property rights, streamline processes and reduce the need for duplicate consents.
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