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Competence Framework - 27 of 29

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COMPETENCE 27: CONTRACT MANAGEMENT

The ability to monitor and manage supplier performance.

Introduction

Contract management is a proactive activity tailored to the size, complexity and significance of a change initiative. Appropriate contract management will facilitate a proactive working environment and include a process to review progress, incorporating formalised reporting from contract initiation through to contract closure.

KNOWLEDGE

Knowledge of the governance framework associated with a contract.

 

APPLICATION

Comply with relevant organisational procedures associated with contract management.

Consider:

  • The relevant policies and procedures to be adhered to.
  • The regulatory landscape.
  • The contract terms and conditions.
  • The controls in place.

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KNOWLEDGE

Knowledge of the need for shared understanding of delivery obligations.

 

APPLICATION

Respond appropriately to ensure all parties comply with the terms of a contract.

Consider:

  • The benefits of defining clear roles and responsibilities.
  • The rules of conduct to be adhered to.
  • Ways in which to clarify and understand expectations.
  • Ways to motivate stakeholders to comply with the contract.

KNOWLEDGE

Knowledge of the process for monitoring and evaluating performance.

 

APPLICATION

Effectively monitor the supplier and organisation performance against agreed contractual obligations.

Consider:

  • The behaviours required for a coherent culture and ways to build relationships.
  • Ways to establish sources of data, and methods to validate/assure timeliness and quality of data.
  • Ways to report, communicate and the escalation routes in place.
  • Ways to report risks and issues and their potential impact on contractual terms.
  • The dependencies and assumptions that may impact performance.

KNOWLEDGE

Knowledge of respective obligations of all parties.

 

APPLICATION

Effectively manage supplier relationships, and manage contract variances promptly to resolve any contractual problems.

Consider:

  • The governance process to be followed, including formal reporting, escalation routes and frequency of reviews.
  • Ways to understand the customer’s responsibilities and the supplier’s perspective of a change, and their motivating factors.
  • The risk involved in a change, and ownership of the risk.
  • The type of relationship required, and the skills needed to build and manage a coherent team.
  • The approaches to be used to resolve contract problems.
  • The process to follow to change contracts, including due attention to the legal process for contract variation.

KNOWLEDGE

Knowledge of the process to close a contract.

 

APPLICATION

Effectively close a contract once all contractual obligations have been met.

Consider:

  • The finance process to be used.
  • The use of data to prove confirmation of obligations. Any specialised resource needed to close a contract.