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Transcript of Contract Management Sub-Regional Caribbean Public Procurement Conference The Importance of Contract...
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Contract Management Sub-Regional Caribbean
Public Procurement Conference
The Importance of Contract Management
Port of Spain, TrinidadJune 22, 2014
Sabine Engelhard
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Segment I:Contract Definition and Purpose
Segment II: What is Contract Management?
Segment III: Contract Management and Achieving Results
Importance of Contract Management
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Topics Overview
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Segment I Contract Definition
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Segment I: Contract Definition
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Segment I: Contract Definition
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Where does the Contract fit in the Procurement Process?
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Segment I: Contract Definition
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Segment II What is Contract Management?
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What does Contract
Management Imply ?
Segment II What is Contract Management?
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-Background information.-Description of the physical or functional characteristics.-Nature of a supply, service, or construction item.-Requirements to be satisfied by a product, material, or process. -Procedure to determine whether requirements are satisfied/Reporting.
Source: National Institute of Government Purchasing (NIGP) Dictionary of Purchasing Terms).
Segment II What is Contract Management?
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•Written by someone who understands the topic (Procurement function: help articulate the needs)•Invest time specifying what you want & how you want it •Be sure that what you write is what you want•Because what you write is what you will get
Segment II What is Contract Management?
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Segment II What is Contract Management?
When does Contract Management Start formally?
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Know your contract (what does it contain?);
Understand your contract (what are these provisions?);
Use your contract (When is it appropriate to use what/timely action);
Know your risks & understand how to mitigate them;
Supervise your contract technically (performance & quality);
Escalate to obtain help/guidance .
Segment II What is Contract Management?
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Segment II What is Contract Management?
Contract Management
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Segment II What is Contract Management?
Contract Management
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Segment II What is Contract Management?
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Key Supplier Management Program(IDB example)
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Segment II What is Contract Management?
IDB Corporate Contracts Management Tool Kit
(Summary of Topics)
Scope of Contract Management;Key Contractor Management Program;Importance of Financial Reporting and Contractor’s Internal Controls;Focus of Contract ManagementTerms of Reference, Statement of WorkNature & Extent of Contract ManagementContractor’s Performance
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Segment II What is Contract Management?
IDB Corporate Contracts Management Tool Kit
(Performance Support Tools)
Template for TOR & SOWContract Management DiagramContract Kick-off Mtg. ChecklistContract Management ChecklistContractor’s Performance and Contract Progress Report FormContract Closeout ChecklistContractor’s Final Performance Evaluation Form
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Contract Specialist
•Letter to to PM confirming role & responsibilities.•Conduct Contract Kick-off Mtg.
•Validate contractor’s processes & systems for compliance.•Maintain contract files and monitor documentation.
•Coordinate performance reviews.•Resolve issues & disputes.•Document actions.
•Issue amendments.•Evaluate.•Negotiate.•Modify scope & price.•Maintain documentation.•Complete Contract Closeout Checklist.
•Complete contract files.•Archive file.
Project Manager •Acknowledge PM communication.•Read contract•Participate in Contract Kick-Off Mtg.
•Prepare Surveillance Plan.•Complete project Mgr. Contract Mgt. Checklist.
•Implement Surveillance Plan.•Monitor & documents contractor’s performance (Contract Progress Report if SLA).•Document acceptance of deliverables.•Notify Contract Specialist of issues & disputes.
•Identify & evaluate changes.•Notify Contract Specialist.•Document changes.•Assist in negotiations.
•Finalize acceptance.•Authorize payment.
•Complete Contract Closeout Checklist•Provide all relevant documentation•Complete Contractor Final Performance Report.
Segment II What is Contract Management?
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Segment III Good Contract Management-Achieving Results
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Segment II Good Contract Management-Achieving Results
Importance of Contract Management Achieving Results
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Segment III: Good Contract Management-Achieving Results
Good Contract Management -Achieving Results
Good specifications (TORs or SOWs); Planning of selection process & execution
of assignment; Sufficient technical knowledge; Sufficient & timely performance;
supervision/measurement; Good understanding of when changes to
scope needed.
Technical Capacity Critical:
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Segment III: Good Contract Management-Achieving Results
Good Contract Management -Achieving Results
Administrative Capacity is Critical:
Properly Defined Responsibilities and Rules;
Capacity to prepare standardized documentation;
Capacity to evaluate and negotiate; Clear Procedures (i.e. acceptance of
deliverables, payments, amendments, extensions, termination…);
Dispute resolution mechanism (appropriate use).
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Segment III: Good Contract Management-Achieving Results
How do we contribute to Achieving Results for the Organization?
Good Contract Management-Strategic function and important pillar.
Empowering organization.
Good contracts outcomes.
Contribution to organization’s Goals.
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