Step 5 - CONTRACT MANAGEMENT

Approval to award the contract has been obtained.

Once the contract has been awarded it must be managed on an ongoing basis, to ensure the asset 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.

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 and 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 justified and recorded for auditing and accountability purposes.

Where there is any non-compliance, an action plan is developed and agreed by both parties, and its implementation is monitored.

When a contract variation is raised by either party, its impact on the current agreement is reviewed and other options are considered.

A report highlighting the costs and benefits is prepared for approval. Once it is approved, details are provided to affected parties.

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

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.