Management of unresolved issues

In many instances, not all issues are resolved at the time of contract signature. For example, aspects of the contract may be subject to conditions of licences or third party approvals or the outcome of a review of the transition phase. These issues (which should have been documented in earlier phases of the procurement cycle) need to be addressed in a timely way during contract start-up. Issues that are not properly dealt with at the appropriate time can create problems at a later stage.

In situations where there are issues that have not been fully resolved at contract signature, the contract manager should follow these up and record the details of how these issues were resolved.

The detailed review of the contract, including the contract management plan, at the contract start-up may also identify issues that require clarification or elaboration in the contract. It is important to address any such issues promptly. This may require a contract variation or exchange of correspondence, and updating of the contract management plan. Contract variations are discussed later in this part.

In many instances, not all issues are resolved at the time of contract signature.

The following case study is an example of how an entity addressed the start of a new contract.

Case Study: Contract start-up

An entity was about to commence operation of a national contract for the provision of services to the public on behalf of the agency. The entity's state offices would play a major role in monitoring service delivery performance by the contractor's branches in each state. A nationally consistent approach to service delivery was an important government objective.

A contract commencement event was held to help ensure a consistent mutual understanding of the service standards laid down by the contract, and the arrangements for monitoring performance. Key staff from the national and state offices of the entity and the contractor participated in the event.


Contract start-up checklist

Once a contract is signed, there are often a number of activities that need to be addressed in order for the contract relationship to be properly established and to assist in an effective contract start-up.

Aspects that may need to be addressed include:

reviewing and understanding the conditions of the contract, any schedules and protocols;

developing or reviewing any necessary risk plans;

establishing timelines for the completion of any tasks or actions required to enable the contractor to commence work under the contract;

Identifying and/or addressing any unresolved issues;

assessing resource requirements;

allocating responsibilities for key aspects of managing the contract;

updating (or developing if not already done) authorisations and delegations;

updating (or developing if not already done) the contract management plan;

organising contractor access to premises and systems;

arranging contractor induction, including cultural, industrial, security and health and safety issues; and

establishing documentation and recordkeeping requirements and protocols.