The risks that may arise during contract closure are likely to vary in accordance with the way the contract is ended.

When a contract ends because all obligations have been fulfilled, risks to successful closure include:

•  the failure to return all relevant documents, materials and records; and

•  non-submission and payment, where applicable, of all invoices.

In the transition to another contractual arrangement, risks can include:

Sources of risk

Examples of risks

Contract materials, information and records

Failure to return all required materials, information and records within agreed timeframes and/or in the required format

Payment

Failure to agree the final payment details

Submission by contractor of an invoice for unforeseen additional costs

Transition arrangements

Failure to appropriately manage the transition-out by the contractor

In the transition to another contractual arrangement, risks can include the failure to agree final payment details.

Not undertaking arrangements for a new procurement early enough in the procurement cycle

Not managing the process of re-tendering in line with probity requirements, particularly where the existing contractor is re-tendering

Disruption to the provision of goods and services

Not addressing performance problems with an existing contractor who is re-engaged

Not reviewing value for money when contracts are extended

  The Actions and Responsibilities Matrix at the end of this part outlines a typical sequence of steps, the key stakeholders involved and documents produced in ending the contract.