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Competence Framework - 27 of 29

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COMPETENCE 27: CONTRACT MANAGEMENT

The ability to monitor and manage supplier performance.

Introduction

Contract management is a proactive activity tailored to the size, complexity and significance of a change initiative. Appropriate contract management will facilitate a proactive working environment and include a process to review progress, incorporating formalised reporting from contract initiation through to contract closure.

❶

KNOWLEDGE

Knowledge of the governance framework associated with a contract.

 

APPLICATION

Comply with relevant organisational procedures associated with contract management.

Consider:

  • The relevant policies and procedures to be adhered to.
  • The regulatory landscape.
  • The contract terms and conditions.
  • The controls in place.

 ❷

KNOWLEDGE

Knowledge of the need for shared understanding of delivery obligations.

 

APPLICATION

Respond appropriately to ensure all parties comply with the terms of a contract.

Consider:

  • The benefits of defining clear roles and responsibilities.
  • The rules of conduct to be adhered to.
  • Ways in which to clarify and understand expectations.
  • Ways to motivate stakeholders to comply with the contract.

❸

KNOWLEDGE

Knowledge of the process for monitoring and evaluating performance.

 

APPLICATION

Effectively monitor the supplier and organisation performance against agreed contractual obligations.

Consider:

  • The behaviours required for a coherent culture and ways to build relationships.
  • Ways to establish sources of data, and methods to validate/assure timeliness and quality of data.
  • Ways to report, communicate and the escalation routes in place.
  • Ways to report risks and issues and their potential impact on contractual terms.
  • The dependencies and assumptions that may impact performance.

❹

KNOWLEDGE

Knowledge of respective obligations of all parties.

 

APPLICATION

Effectively manage supplier relationships, and manage contract variances promptly to resolve any contractual problems.

Consider:

  • The governance process to be followed, including formal reporting, escalation routes and frequency of reviews.
  • Ways to understand the customer’s responsibilities and the supplier’s perspective of a change, and their motivating factors.
  • The risk involved in a change, and ownership of the risk.
  • The type of relationship required, and the skills needed to build and manage a coherent team.
  • The approaches to be used to resolve contract problems.
  • The process to follow to change contracts, including due attention to the legal process for contract variation.

❺

KNOWLEDGE

Knowledge of the process to close a contract.

 

APPLICATION

Effectively close a contract once all contractual obligations have been met.

Consider:

  • The finance process to be used.
  • The use of data to prove confirmation of obligations. Any specialised resource needed to close a contract.