As noted earlier in this Guide, contracting is now an integral part of doing business in the public sector and many government programmes involve some level of contracting activity. Having an effective contract management capability will assist entities to:

•  obtain value for money from its expenditure on contractors

•  meet its internal and external reporting and accountability needs and responsibilities (Part 1 of the Guide details the reporting responsibilities for FMA agencies)

•  manage contract liabilities and commitments, and

•  manage contract resources as part of achieving its business objectives.

This contract management capability includes having:

•  the necessary level of senior management commitment and support

•  the capacity to develop and maintain an up-to-date contracting policy and procedural framework

•  staff who exercise procurement delegations with experience and knowledge commensurate with the size, nature and complexity of the contracting activities on which they make decisions

•  sufficient time and resources to properly manage the contract, including access to specialist skills where needed, and

•  individual contract managers with a level of knowledge, skills and experience commensurate with their contracting responsibilities.

Having an effective contract management capability will assist entities to obtain value for money from its expenditure on contractors.