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.
- Contract Management Framework (PDF, 886KB)
(describes the required activities and responsibilities associated with the 3 phases of contract management)
- 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)
- 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)
- 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)
- Create a purchase order
- Learn more about value for money
- Additional procurement resources
- Use VendorPanel for quotes
For general procurement queries, email email@example.com.
For questions about going to market, contact your agency procurement lead or see your intranet.