Contract management.pptx.ghfghkgh nkioolkmlloik gthaadse jfghhghggjgg

contract management

1. Contract Management

2. Definition of Contract Management Contract management is the process which ensures that both parties to a contract fully meet their respective obligations in order to efficiently and effectively deliver the objectives of the contract.

3. Key Stakeholders in Contract Management Stakeholder Role User department Nominates contract manager and monitors progress and execution of contract Provider or Contractor Deliver requirements of the contract in agreed time frame. PDU Monitors progress of work to ensure milestones agreed are achieved. Submit quarterly reports to AA on all contracts Approving Authority Overall management of implementation of the contract

4. Contract Management Structure Contract management is passed to the user department by the AA. The User Department nominates to the AA a member to be appointed as contracts manager. May be from another department or outside the organisation ( if expertise is not available ). A contract manager is availed a copy of the contract document.

5. Responsibilities of a Contract Manager Preparation of the contract implementation plan Manages day-to-day technical supervision, managing obligations and ensuring provider performs contract. Inspection and testing of components. Seek authority for extensions, variations, suspension, performance certification etc in writing.

6. Responsibilities Cont’d Manage handover and acceptance procedures. Appraise the performance of the provider and report to the PDU. Submit a monthly report on the progress of the contract to the AA and copy the PDU.

7. Types of Contracts T Type Where its applicable Lump sum contract Supplies, Works, Services Time-based contract Services Admeasurement contract Works

8. Types of Contracts Cont’d Type Where its applicable Frame-work contract Supplies, Services Percentage contract Services Cost reimbursable contract Works Target price contract Works

9. Contract types Cont’d Type Where its applicable Target price contract Works Retainer contract Services Contingency or success fee contract Services

10. Key issues in Contract Management   Contract management plan Variation or change orders Contract amendment

11. Causes of Delays in Contracts Implementation Provider Lack of resources Inadequate skill & expertise Delays in supply chain Unrealistic estimates Failure to repair defective work. Entity Inadequate specification & variations Poor contract administration Delay in payments Delay in inspection Disputes