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Developing 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:
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.
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:
During the finalisation of the contract, details need to be agreed in relation to:
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.
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.
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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