Contract Management

Formalise contracts and/or service level agreements with providers of products and services including measure and manage supplier performance and fulfilment of agreed-upon service level agreements. This includes resolution of contractual issues and maintenance of vendor and/or provider relationships.

Proficiency Level

Level 1 (Follow)

  • Basic knowledge of purchasing.
  • Knowledge of purchasing techniques.
  • Ability to research and apply laws, regulations, and policies.
  • Knowledge of negotiated procurement procedures and the laws, regulations and precedents governing procurement by this method, to perform developmental assignments or segments of large procurement actions.

Level 2 (Assist)

  • Knowledge of the principles, techniques, methods, and procedures of contracting to perform pre-award and post-award procurement actions where the actions are well defined and well precedented.
  • Knowledge and skills sufficient to evaluate bids and proposals, recommend competitive ranges, make standard investigations of contractor capabilities concerning financial, personnel, equipment, and managerial resources necessary to fulfil contract terms.
  • Limited knowledge of negotiation methods, techniques, and principles sufficient to work with request for quotations and requests for proposals for standard items.
  • Knowledge and skill sufficient to monitor the progress of contractors with fixed price contracts; to advise contractors regarding contractual requirement limitations; to coordinate requests for deviations from contract specifications; to review payment requests; and to recommend approval payment or withholding of partial or final payment.
  • Research, interpret, and analyse precedent decisions, laws, and regulations.
  • Communicate orally and in writing to present instructions, policy, and/or supporting documentation.

Level 3 (Apply)

  • Source and collect contract performance data (such as pricing and supply chain costs), and monitor performance against KPIs.
  • Identify and report under-performance and develop opportunities for improvement.
  • Monitor compliance with Terms and Conditions and take appropriate steps to address non-compliance.
  • Pro-actively manage risk and reward mechanisms in the contract.
  • Monitor progress against business objectives specified in the business case.
  • Identify where change is required, and plan for variations.
  • Ensure that change management protocols are implemented in consultation with stakeholders.

Level 4 (Ensure)

  • Oversee and measure the fulfilment of contractual obligations.
  • Use Key Performance Indicators (KPIs) to monitor and challenge performance and identify opportunities for continuous improvement.
  • Develop strategies to address under-performance and compliance failures, including application of contract terms.
  • Identify where changes are required, evaluate the impact, and advise stakeholders about the implications and consequences for the business and/or the procurement element of programmes/projects.
  • Negotiate variations and seek appropriate authorisation.
  • Actively support and engage with experts and stakeholders to ensure continuous improvements are identified through review and benchmarking processes.

Level 5 (Strategise)

  • Negotiate and resolve contractual issues, including failure to meet contractual obligations.
  • Promote change control processes and lead variation negotiations when necessary.
  • Champion continuous improvement programmes, jointly developing strategies and incentives to enhance performance.
  • Undertake comprehensive financial evaluations.
  • Ensure non-discriminatory behaviour and legal compliance.
  • Ensure that lessons learned from reviews are documented and promoted with all stakeholders.
  • Develop broad industry/category credentials as “best practice” champion.