The first phase of contract management commences from the time the preferred bidder is selected. It would normally end at the commencement date of the contract but can extend for a period following commencement, depending on the nature and complexity of the contract and the time available to complete the required transition phase.
There are, however, several steps required by the proponent at the post-bid stage of the process prior to the finalization of the contract. Once a contract has been awarded, the proponent and the winning bidder will likely need to clarify some issues before signing their contract(s). Some of these issues may arise from the lack of clarity in the draft contract documents, while others may arise as the winning bidder seeks financial closure. The post-bid processes can be lengthy and can also lead to many changes. Bidders may bid to win knowing that there could be scope for changes in their commitments during the contract negotiations. Provincial line ministries, provincial government agencies, municipalities and broader public-sector partners may seek to reduce such risks by:
• requiring detailed and firm evidence at the bidding stage that financial closure can be reached within a specified period;
• preparing draft contracts so as to minimize the scope of changes as a result of post-bid negotiations; and
• keeping the runner-up in the bidding process ready to replace the winning bidder.
Prior to awarding or executing an agreement, a probity audit report should also be prepared. This report should provide an opinion on whether all processes have been conducted openly, fairly and in accordance with applicable policies, standards and guidelines.
A project continuation document should also be prepared and updated as needed throughout the life of the project to enable the transfer of knowledge regarding the project within the agency. This document should contain key details of the project from the desired outcomes to legal responsibilities and critical dates.