Contract Management Case Study

QUESTION TWO (2)

Contract management “is the unconscious process of methodically and efficaciously managing contract introduction, execution and evaluation for maximizing operational and monetary transmitting and minimizing risk”. The growing realization of the need to introduce and improve contractual operations and satisfy increasing compliancy and analytical needs has also led to an increment in the acceptance of more formal and structured contract management routine and an growth in the accessibility of software package practical application designed to reference these needs (Contract management guide 2)

The activities of contract management are intended to ensure that the parties work together to achieve the objectives of the contract.

The supplier should be considered a member of the project team, with all members trying for success. These include:

• Contract report and Documentation

• Agreement analysis

• Pre-performance conference

• Effective communication

CONTRACT PERFORMANCE MONITORING AND CONTROL

As soon as the contract has been provided, the accountable procurement officer, monitors performance, collects facts, and measures real agreement achievement. This is crucial for powerful control. The sources dedicated to those tasks, and the strategies used to carry out them, will depend on the nature of the settlement work, the dimensions and complexity of the agreement, and the assets to be had.

1. Control points

• Cost control

• Schedule control

• Settlement with specifications, structuring of operation, declaration of labor (best warranty and manage)

• Deference with phrases and conditions, paperwork prerequisite, and administrative aspects of the performance..

2. Monitoring methods

• Direct

Prepare very last agreement performance document, inclusive of classes found out. Depending on the business enterprise, this file can be basically inner or may be shared with the supplier for their know-how and comment

3. Prepare dealer assessment shape and ahead for appropriate movement.

4. Difficulty in final reputation on the basis of the officer’s record.

5. Make final financial settlements.

6. Liquidate/return bonds and/or securities.

7. Record any residual duties and recommend officer’s procedures.

8. Close-out contract record.

Benefits of Contract Management if all instructions are successfully carried out.

a) Guarantees that contractual responsibilities by means of each the sourcing dealer and consumer are met;

b) Facilitates do away with capacity breach of settlement conditions;

c) Guarantees greater favorable contract effects;

d) Improves excellent of service and customer awareness;

e) Achieves fee for cash and monetary control;

f) Decreases the level of chance;

g) Clarifies the jobs and duties of the settlement manager, contractors, give up customers;

h) presents early identification and determination of bad overall performance, other troubles or disputes;

Coast (2000)

All processes was taken from Procurement Practioner’s Handbook