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'Contract management' refers to the management of performance of suppliers through standardised processes such as contract administration, performance reviews and risk management. Below, is an overview of basic contract management techniques, and key signposts to sources of more detailed information.
As the diagram below shows, contract management refers to a set of techniques used to deliver the expected value defined within a contract.
Source: GCF, SSRM Guide, 2018
A number of boroughs indicated that they do not have a mature or consistent approach to contract management. When performed well it can enable better outcomes from procurements, particularly in technology contracts requiring customisation, implementation or capacity for innovation.
Contract Managers Contract Managers are responsible for performing or coordinating the bulk of contract management functions and should be aware of best practice.
Procurement Directors Procurement Directors ought to steer the contract management approach and take an active role in appraising its ability to deliver organisational outcomes.
Service Teams
Service teams need to have effective oversight of the management of a contract, including when they can expect a service to expire or require renewal, and how well a supplier performing against contract specifications.
CIOs / CDOs & Procurement, Finance and Legal teams CIOs / CDOs ought to contribute to the diligence of a technical supplier and in agreeing desired outcomes sought from a technology supplier. Procurement, finance and legal colleagues should be consulted on and provide approval for any contractual decisions that inform the tendering process.
Project Teams Project Teams (e.g. SRO, Business Analyst, Data Protection Officer) ought to be made aware of typical contract management procedures to ensure that they follow any protocols when engaging with suppliers.
If you would like to strengthen your contract management capabilities, there are a number of references available online. For public bodies, the National Audit Office's 'Good Practice Contract Management Framework' is a good starting point. It outlines eleven key contract management activities to be aware of, though not all are relevant to managing every contract: