contract management - procurement mini-conference 2014
DESCRIPTION
Gareth Coles of WCVA at the Procurement Mini-Conference 2014.TRANSCRIPT
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Contract management
Gareth Coles – WCVA
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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
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“Hello, I’m the Contract Manager, but of course you
manage yourselves, don’t you?”
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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
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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
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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
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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
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Benefits – for both
Ensure that service users receive a high quality service
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3 elements to the process
1. Service delivery management
2. Relationship management
3. Contract administration
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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
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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
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3. Contract administration
Focuses on:
• the formal governance of the contract• changes to the contract
documentation
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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
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Topics
1. Your tender response2. Negotiating and signing the contract3. Contract Manager role4. Contract management meetings5. Documentation
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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?
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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
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3. Contract Manager role
One appointed for each side
• Responsibility for contract success• First point of dispute resolution• Escalation of problems• Agreed beforehand
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4. Contract management meetings
• Formal and minuted• Set / called by Commissioner• Periodic review of whole contract• Opportunity to discuss future
requirements
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5. Documentation
Buy side:• Agenda • Minutes / notes• Evidence used
Supply side:• Prepared notes• Performance
reports• Remedial action
plans• Evidence used
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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...
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Don’t assume! If they won’t do it –
you do it.
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Resources and support
• WCVA • Wales Co-operative Centre • County Voluntary Council (CVC)• Business Wales• Charity Commission
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Any questions?