Contracting out services may bring many benefits but one potential problem is the risk of service implementation becoming too distant from the ultimately responsible body, namely, Council.
Having just awarded what is believed to be the biggest contract yet made in the State, to private firm Transfield, Mornington Peninsula Shire Council in Victoria is determined to avoid this pitfall. To do so it has entered a landmark Partnering agreement with Transfield.
The Partnering relationship commenced in late June with a workshop involving the Shire’s newly elected Councillors, representatives of Transfield and major subcontractors working on the project. The Mayor Cr David Jarman, said that the partnering philosophy is a reflection of the commitment of both Council and Transfield to work as a team.
“The end result is that you can achieve much more because both parties have a commitment to resolve issues with a win/win outcome,” he said. “The beneficiaries will be the ratepayers, as our goal is to achieve significant cost savings while providing a higher quality of service.”
Council’s Contracts Manager, Peter Gore, said that benefits will include a lower risk of cost overruns and delays because of better time and cost control over the project.
“There will also be lower administrative costs, increased opportunities for innovation because of more open communication, and an increased opportunity for a financially successful project due to a non adversarial approach to contract management,” he said.
At the workshop, clearly defined goals for each of the parties were identified and a carefully crafted series of goals, targets and performance measures agreed upon. These will be monitored monthly.
For further information contact Peter Gore, telephone (03) 5986 0202.
