Contract management

Gareth Coles – WCVA

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

“Hello, I’m the Contract Manager, but of course you

manage yourselves, don’t you?”

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

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

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

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

Benefits – for both

Ensure that service users receive a high quality service

3 elements to the process

1. Service delivery management

2. Relationship management

3. Contract administration

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

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

3. Contract administration

Focuses on:

• the formal governance of the contract• changes to the contract

documentation

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

Topics

1. Your tender response2. Negotiating and signing the contract3. Contract Manager role4. Contract management meetings5. Documentation

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?

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

3. Contract Manager role

One appointed for each side

• Responsibility for contract success• First point of dispute resolution• Escalation of problems• Agreed beforehand

4. Contract management meetings

• Formal and minuted• Set / called by Commissioner• Periodic review of whole contract• Opportunity to discuss future

requirements

5. Documentation

Buy side:• Agenda • Minutes / notes• Evidence used

Supply side:• Prepared notes• Performance

reports• Remedial action

plans• Evidence used

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...

Don’t assume! If they won’t do it –

you do it.

Resources and support

• WCVA • Wales Co-operative Centre • County Voluntary Council (CVC)• Business Wales• Charity Commission

Any questions?

Thank you

Gareth Coles 02920 431 771 gcoles@wcva.org.uk