This document provides guidance on contract management. It discusses the benefits of effective contract management for both buyers and suppliers, including ensuring service users receive high quality service. Contract management has three elements: service delivery management, relationship management, and contract administration. Service delivery management focuses on delivering the specified service to the required standard and quality. Relationship management keeps the relationship open, constructive and problem-focused. Contract administration governs the formal aspects of the contract including documentation and changes. The document advises addressing the service specification in tenders, not starting delivery until the signed contract clarifies all aspects, appointing contract managers, using contract management meetings, and maintaining thorough documentation. Effective contract management can lead to contract extensions and improved trust and reputation.
2. This session will:
• provide guidance on successful contract
management
• provide advice on how to improve your
relationship with commissioners and
purchasers
• look at the key issues you should be
considering before submitting your
tender
4. What is contract management?
“The process that enables both
parties to a contract to meet
their obligations in order to
deliver the objectives required
from the contract”
Cabinet Office
5. What is contract management?
“The activities of a buyer
before, during and after a contract
is signed, to ensure that all parties
to the contract understand and
fulfil their contractual
obligations.”
Chartered Institute of Purchasing and Supply
6. Benefits – for the buyer
• Less risk of a change of supplier
• Increase chances of contract renewal
• Ensuring value for money
• Avoid unnecessary costs
• Prevent problems escalating
• Shared aims
• Mutual understanding
7. Benefits – for the supplier
• Increase chances of contract
extension
• Re-negotiate rather than re-tender
• Improved trust
• Mutual understanding
• Avoid problems escalating
• Provides an evidence base
• Boost your reputation
8. Benefits – for both
Ensure that service users
receive a high quality service
9. 3 elements to the process
1. Service delivery management
2. Relationship management
3. Contract administration
10. 1. Service delivery management
Focuses on ensuring that the service
that was commissioned is delivered:
• as specified in the contract
• to the required level of performance
• to the desired quality
11. 2. Relationship management
Focuses on keeping the relationship
between the two parties:
• open, constructive and professional
• focused on resolving (or easing)
tensions
• identifying problems early
13. Each separate element of the contract
management process must be
proactively managed for you to have
your overall contract deemed a
success.
Contract management process
14. Topics
1. Your tender response
2. Negotiating and signing the contract
3. Contract Manager role
4. Contract management meetings
5. Documentation
15. 1. Your tender response
Address the service specification first
and foremost
• Understand what they want you to
deliver
• Be clear about what you can deliver
• Is it achievable?
16. 2. Negotiating and signing the contract
Do not commence delivery if:
• You haven’t signed
• There is still disagreement
• Not everything is written down
• You are not clear about payment
17. 3. Contract Manager role
One appointed for each side
• Responsibility for contract success
• First point of dispute resolution
• Escalation of problems
• Agreed beforehand
18. 4. Contract management meetings
• Formal and minuted
• Set / called by Commissioner
• Periodic review of whole contract
• Opportunity to discuss future
requirements
20. Learning points
• Each element of the process should be
considered before tender submission
• Winning the contract is only the part of the
story
• A proactive approach to contract management
should be embedded in your delivery
• Successful contract management will lead to
greater success
• And...
