2.6 Contract management requires a range of abilities. When devising the person specification for such a position, Authorities should consider the following skills.
• Communication: relationships are likely to breakdown when parties do not understand each other's position or where poor communication has led to misunderstanding.
• Negotiation: agreeing the costs of variation and working through the benchmarking and market testing exercises are occasions that the contract manager will need to negotiate with the Contractor. The contract manager will also need to negotiate internally with other members of the Authority for example with staff over changes in service provision.
• Financial: research into PFI has identified that many Authorities regarded their payment mechanism as complicated. The contract manager will need to understand the mechanism.
• Change management: the operational phase will mean a new way of working for many Authorities as they will now procure services rather than deliver them.
• Analytical skills: the contract manager will need to analyse the contract management portfolio and reflect the provisions in practical monitoring processes.
2.7 Authorities should plan for change within the team, and appoint a contract manager as part of the procurement from at least the time of appointment of the Preferred Bidder. With the introduction of the Competitive Dialogue, it is sensible that the contract manager is appointed prior to the end of the dialogue stage. Whilst the project manager will continue to be responsible for the procurement and the negotiations, the contract manager will be concerned with the details that will affect the operational phase. For example, ensuring that the procedures to affect small works changes are effective. A key role for the contract manager during the procurement phase is to set up the contract management arrangements (see Chapter 3).
2.8 The contract manager should be involved in the negotiations with the Preferred Bidder on relevant technical schedules, such as the performance measurement system. If the contract manager is not appointed until after the contract is signed, there is a danger that the procurement team will not have the opportunity to pass on information as to why particular positions were negotiated, and what impact these will have on the contract. Further information on the role of the contract manager is provided in Annex A.