Manage a contract

Effective planning for managing a contract is an important part of the procurement sourcing process. Consider contract management issues, such as how supplier performance will be measured, early on.

There are 3 major phases of contract management:

• Phase 1: Contract set-up
  Initiate and plan the contract management process
• Phase 2: Contract management
  Administer and manage contracts
• Phase 3: Contract close-out
  Close and transition contracts

Benefits of good contract management

We need to effectively manage contracts with suppliers to ensure the Queensland Government maximises benefits from procurement. These benefits include:

Value for money

• Enables savings opportunities identified during the procurement or contract management process.
• Enables benefits through ongoing performance reviews, service improvements, supply chain improvements, and innovation.

Effective risk management

• Reduces contractual risks through robust contract management practices.
• Maximises outcomes to end users by managing supplier performance, maintaining quality, improving productivity and identifying opportunities for improvement and innovation.

Manage value and risk

Use the value/risk matrix (XLSX, 114KB) to classify a contract based on value and risk. This is a key step in setting up a contract (phase 1).

Extending and renewing contracts

Before a contract expires, you need to determine which approach will obtain the best value for money: extending and renewing the contract, or re-approaching the market under a new procurement process.

Resources

• Contract Management Framework (PDF, 886KB)
  (describes the required activities and responsibilities associated with the 3 phases of contract management)

Phase 1: Contract set-up

• Value/risk matrix (XLSX, 114KB)
  (classify a contract—as either routine, focused or strategic—based on value and risk)
• VRM user guide (PDF, 439B)
  (how to use the value/risk matrix for contract management)
• Contract management checklist (XLS, 123KB)
  (key information relevant to managing routine contracts)
• Contract management plan template (DOCX, 82KB)
  (key activities and responsibilities for managing a contract)
• Contract kick-off meeting template (DOCX, 60KB)
  (a guide for the contract kick-off meeting)

Phase 2: Contract management

• Contract KPI development template (DOCX, 55KB)
  (explains KPIs including minimum performance requirements, frequency of and responsibility for measurement)
• Contract performance review meeting template (DOCX, 57KB)
  (supports the contract manager to conduct and document a contract performance review meeting)
• Risk register template (XLSX, 768KB)
  (record and maintain a single repository for contract risks)
• Checklist for contract extensions/renewals (DOCX, 236KB)
  (record the value for money assessment of extending or renewing a routine contract)
• Contract review report (DOCX, 371KB)
  (record the analysis and recommendation to extend or renew a contract, or transition to other suppliers)
• Letter of variation (DOCX, 301KB)
  (a letter that formally documents variation(s) to a contract)
• Letter to extend or renew a contract (DOCX, 305KB)
  (a letter that formally documents an extension or contract renewal)

Phase 3: Contract close-out

• Lessons learned template (DOCX, 55KB)
  (document lessons learned throughout the contract lifecycle)
• Close-out check list template (DOCX, 55KB)
  (confirm all close-out activities have been performed)

More information

• Create a purchase order
• Learn more about value for money
• Additional procurement resources
• Use VendorPanel for quotes

Contact

For general procurement queries, email betterprocurement@epw.qld.gov.au.

For questions about going to market, contact your agency procurement lead or see your intranet.