Step 5 - CONTRACT MANAGEMENT

The contract has been awarded.

The contract must be managed on an ongoing basis to ensure the procurement is delivered in compliance with the contract and that the government meets its contract obligations (for example to make payments or provide information or materials). A formal governance structure within the contract documents provides the framework for communicating with the service provider and resolving any issues.

Formal meetings should be conducted on a periodic basis with a focus on agreed KPI’s to assess the performance of both parties based on the terms in the contract. Variances to the contract and other attendant issues must also be effectively managed and resolved.

• Key Documents
• M2009-07 NSW Govt Apprenticeship Program (mandates regular reports on meeting Govt apprenticeship commitments)
  
• M2008-06 State Property Authority and Government Property Principles

Manage contract

Once the contract is awarded, appoint a contract manager to manage the implementation of the contract.

A governance framework and contract management plan with KPIs is developed are confirmed with the supplier. This covers all aspects relating to the contract to ensure both parties have a common and clear understanding of their responsibilities and obligations.

In line with the contract specification, the operational aspects of the contract are monitored and measured on an ongoing basis.

Actions and decisions need to be accounted for and, in particular, good record keeping of decisions for auditing and accountability purposes.

An action plan is developed in areas of non-compliance that is agreed to by both parties

When a contract variation is raised by either party, the variation is reviewed in terms of impact on the current agreement and what other alternatives may be available. Upon review and approval of the variation, a report highlighting the cost / benefit can be submitted to the parties affected.

Any material variation to contract information that has already been publicly disclosed will also need to be disclosed.

Contract payments are made in accordance with the terms of the contract.

Under the Gateway Review Process a Pre-Commissioning Review can be held to assess the state of readiness to commission the project and implement the change management required.