An important element in the formation and management of any contract is the quality of the relationship between the contract parties. There is an obligation on both sides to establish and maintain a productive relationship. Having a professional, constructive relationship with the contractor is a key ingredient to the successful delivery of the outcomes sought through the contract.

The aim of relationship management is to keep the communications between the parties open and constructive, non-adversarial and based on mutual understanding. This should assist in preventing problems from arising and also with resolving them in a timely manner should they arise. Having a professional, constructive relationship should assist the effective management of performance, particularly underperformance, should it occur. Maintaining a good relationship does not mean that issues of non-compliance or underperformance cannot be discussed and acted upon. It means that there is a greater likelihood that such issues can be discussed and resolved in a cooperative manner.

Relationships must be managed from the time they begin, in the early stages of the procurement cycle. Ideally, the contract manager should be involved in developing the contract and/or in contract negotiations to ensure effective transitioning. In circumstances where the contract manager is appointed following the award of the contract, the contract manager should seek to build on existing relationships.

The aim of relationship management is to keep the communications between the parties open and constructive, non-adversarial and based on mutual understanding.