The pages in this section of the guide will give you best practice guidance on how to effectively manage your contract.
- contract administration – the meetings you will need to arrange, making payments and keeping records
- contract operation – including managing contract transition and your supplier’s performance
- contract review and renewal – what you need to do when the contract is drawing to a close
Why contract management is important
Contract management is integral to the whole procurement cycle and is essential to achieving business outcomes, savings and efficiencies. It includes all aspects surrounding the value, risk and complexity of a contract. The contract’s administrative arrangements, including delegations, reporting and responsibilities, should be identified when the specification is prepared.
When preparing to take on the responsibilities of managing a contract, you should have a clear understanding of its primary objectives, scope, nature and risks. This assists with compliance and increases awareness of contract deliverables and budgets.
Contract management should be transparent and:
- all outcomes of contract reviews, meetings and any agreed actions must be documented
- confidential information should be handled with due integrity
- contract management staff must avoid conflict of interests with suppliers or service providers
- any existing or emerging conflict of interest must be disclosed immediately and reported to your management
Benefits of good contract management are:
- clear roles and responsibilities
- favourable outcomes
- improved quality of services
- issues identified early
- open communication and collaboration
- lowered risk
Resources for contract management
You can find further guidance on contract management at Goods and services procurement resources.