It is important that the most up-to-date version of the contract incorporating any variations and records of relevant decisions, including approvals and authorisations, is formally evidenced in writing and appropriately stored. This provides the basis for making payments and the ongoing management of the contract.

By the contract management phase a system for maintaining documents for the particular contract should have been established. If this is not the case, a recordkeeping system containing all appropriate documentation should be established in accordance with the entity's recordkeeping policy and practices. A list of documents that may need to be created and retained during the contract management phase is discussed later in this part.

A recordkeeping system containing all appropriate documentation should be established in accordance with the entity's recordkeeping policy and practices.

The following case study highlights a situation where good recordkeeping provided real benefits to the managing entity.

Case Study: The benefits of good recordkeeping

An entity was considering an extension of a major contract (in accordance with an option under the contract). All staff associated with the original tender process and initial operation of the contract had moved to other jobs. An executive level staff member was tasked to assist in deciding whether the extension option should be exercised and then negotiating the extension. The staff member reported that the meticulous recordkeeping of the original contract manager had resulted in major savings in the updated contract. The records provided evidence of the effectiveness (or otherwise) of previous contract clauses, of successful approaches to managing services that could be included in the updated contract, and evidence of early problems that strengthened the agency's negotiating position in exercising the option to extend the contract.

Comment: Despite the lack of business continuity planning, good recordkeeping saved the day!