Contract Management - Procurement Mini-Conference 2014

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Gareth Coles of WCVA at the Procurement Mini-Conference 2014.

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Contract Management - Procurement Mini-Conference 2014

  1. 1. Contract management Gareth Coles – WCVA
  2. 2. This session will: • provide guidance on successful contract management • provide advice on how to improve your relationship with commissioners and purchasers • look at the key issues you should be considering before submitting your tender
  3. 3. “Hello, I’m the Contract Manager, but of course you manage yourselves, don’t you?”
  4. 4. What is contract management? “The process that enables both parties to a contract to meet their obligations in order to deliver the objectives required from the contract” Cabinet Office
  5. 5. What is contract management? “The activities of a buyer before, during and after a contract is signed, to ensure that all parties to the contract understand and fulfil their contractual obligations.” Chartered Institute of Purchasing and Supply
  6. 6. Benefits – for the buyer • Less risk of a change of supplier • Increase chances of contract renewal • Ensuring value for money • Avoid unnecessary costs • Prevent problems escalating • Shared aims • Mutual understanding
  7. 7. Benefits – for the supplier • Increase chances of contract extension • Re-negotiate rather than re-tender • Improved trust • Mutual understanding • Avoid problems escalating • Provides an evidence base • Boost your reputation
  8. 8. Benefits – for both Ensure that service users receive a high quality service
  9. 9. 3 elements to the process 1. Service delivery management 2. Relationship management 3. Contract administration
  10. 10. 1. Service delivery management Focuses on ensuring that the service that was commissioned is delivered: • as specified in the contract • to the required level of performance • to the desired quality
  11. 11. 2. Relationship management Focuses on keeping the relationship between the two parties: • open, constructive and professional • focused on resolving (or easing) tensions • identifying problems early
  12. 12. 3. Contract administration Focuses on: • the formal governance of the contract • changes to the contract documentation
  13. 13. Each separate element of the contract management process must be proactively managed for you to have your overall contract deemed a success. Contract management process
  14. 14. Topics 1. Your tender response 2. Negotiating and signing the contract 3. Contract Manager role 4. Contract management meetings 5. Documentation
  15. 15. 1. Your tender response Address the service specification first and foremost • Understand what they want you to deliver • Be clear about what you can deliver • Is it achievable?
  16. 16. 2. Negotiating and signing the contract Do not commence delivery if: • You haven’t signed • There is still disagreement • Not everything is written down • You are not clear about payment
  17. 17. 3. Contract Manager role One appointed for each side • Responsibility for contract success • First point of dispute resolution • Escalation of problems • Agreed beforehand
  18. 18. 4. Contract management meetings • Formal and minuted • Set / called by Commissioner • Periodic review of whole contract • Opportunity to discuss future requirements
  19. 19. 5. Documentation Buy side: • Agenda • Minutes / notes • Evidence used Supply side: • Prepared notes • Performance reports • Remedial action plans • Evidence used
  20. 20. Learning points • Each element of the process should be considered before tender submission • Winning the contract is only the part of the story • A proactive approach to contract management should be embedded in your delivery • Successful contract management will lead to greater success • And...
  21. 21. Don’t assume! If they won’t do it – you do it.
  22. 22. Resources and support • WCVA • Wales Co-operative Centre • County Voluntary Council (CVC) • Business Wales • Charity Commission
  23. 23. Any questions?
  24. 24. Thank you Gareth Coles 02920 431 771 gcoles@wcva.org.uk

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