Department of Finance

I Manage a Contract

In goods and services procurement, contract managers may be responsible for managing all contract requirements throughout the term including the day-to-day responsibilities.

It is rare that two contracts will have the same management requirements but there are common aspects of contract management that may be useful in avoiding unexpected problems.

If you manage a community services contract there is more information on the Not-for-Profit section on this site.

Contract management

Contract management can be described as the process that ensures all parties fully meet their respective obligations as efficiently and effectively as possible in order to deliver the best value to the agency and WA Government.

When preparing to take on the responsibilities of a contract, it is advantageous to have a clear understanding of the primary objectives, scope and nature and the risks involved from the start.

This knowledge will assist you to ensure compliance with specific customer expectations while being aware of contract deliverables and budget.

Supplier Performance Management is one of the more important aspects of managing a contract. It may include monitoring quality, quantity, outcomes, budgets and timeframes to make sure that you are getting what you asked for, when you want it and at the agreed price.

To assist agencies with measuring the performance of suppliers and aid them in the successful delivery of goods and services of any contract, go to the Supplier Performance Management Framework web page for more information.

Role of the Contract ManagerThe practicalities of practical administration may seem obvious but it can play a key role in lowering the risk of unwanted issues during and after the term of the contract has ended. This may include reporting, monitoring, documenting and communicating contract requirements to maintain continuity of supply.

Various governance, legislative and audit compliance requirements may become your responsibility as the contract manager. Being mindful of these responsibilities may assist in managing contract administration more effectively. 

If you are responsible for working with contract stakeholders such as contracted suppliers, then communication skills can assist to develop robust stakeholder relationships, manage disputes, document and agree on changes or amendments that may arise during the term of contract.

Benefits of contract management

Contract management is essential to achieve the agency’s business outcomes and to deliver savings and efficiencies. It is an integral part of the whole procurement cycle and plays a key role during all stages in the life of a contract.

The benefits of good practice contract management are:

  • Clarity around role and responsibilities
  • More favourable outcomes
  • Improved quality of services
  • Early identification of issues
  • Collaborative approach to solve problems and seek efficiencies
  • Good relationships with open lines of communication
  • Decreased risk.

More information is available on the Resources web page and contract management training details can be found under the Procurement Capability and Training section of this site.

If you are working with a fleet vehicle contract, the State Fleet web page offers more information.



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