Once risks have been allocated and a contract signed, the procurement team needs to establish a risk monitoring system to ensure that:
• services are delivered according to contracted performance specifications
• commissioning issues are minimised and rectified
• payment for services is appropriately verified
• unforeseen risks are identified and assessed expeditiously.
Implementing a monitoring and review process involves two steps to manage both contracted and unforeseen risks effectively, including:
(i) development of a risk management plan
(ii) review and implementation.
Risk monitoring and review are enhanced if the members of the contract management team are involved in the competitive bid process. This gives them an understanding of the philosophy behind the risk allocation, as well as familiarity with the individual risks. The contract management team should become involved in the competitive bid process as early as possible.