What is a contract
management plan?
Do I need a contract
management plan?
When should the
contract management plan be developed?
What should be
included in the contract management plan?
Who develops the contract management
plan?
What is a contract
management plan?
A contract management plan contains all the
key information about how a contract will be managed. It
establishes systems and processes to ensure that the contractor
complies with the terms and conditions during the performance of
the contract.
A contract management plan enables the
contract manager to:
-
develop a good understanding of the contract, and the
responsibilities of the parties involved; and
-
establish a system against which the performance of both parties
can be monitored and problems can be identified early -
either before or as they occur.
Do I need a contract management plan?
A formal contract management plan is not
required for all contracts, but is strongly recommended where the
contract involves large dollar amounts, includes complex technical
requirements, or when the contract manager is responsible for
managing a large number of contracts simultaneously.
When should the contract management
plan be developed?
The contract management plan is a living
document. Its development should commence during the
procurement planning stage, and it should be reviewed and updated
throughout the procurement process and the life of the
contract.
At the procurement planning stage, consideration needs to be
given to:
-
who will manage the contract;
-
how the contractor's performance will be monitored;
-
what the risks associated with the contract are, and how they will
be managed during the course of the contract; and
-
what reporting requirements will be required of the contractor.
During the finalisation of the contract, details need to be agreed
in relation to:
-
performance measures to be used;
-
confidentiality provisions - refer to the Crown Contracts Confidentiality Policy for further
information;
-
milestones;
-
reporting requirements; and
-
implementation/transitional issues.
At the beginning of the contract management
phase, the contract manager should finalise the plan, by
identifying the critical clauses in the contract and other
requirements that may influence the management of the
contract. The plan should be updated throughout the course of
the contract as circumstances require.
What
should be included in the contract management plan?
The level of detail included in a contract
management plan will vary, depending on the nature of the goods or
services being purchased. The majority of the information
needed to complete the contract management plan will be located in
the contract (including the specifications and the
contractor's tender documentation).
See the Pro forma Contract Management Plan for more detail on
what should be included and how the plan should be structured.
Who
develops the contract management plan?
The contract management plan should be
developed by the contract manager, who preferably will have also
been involved in the planning stages of the purchase.
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