Relationship management underpins overall successful contract management. A sound basis for the relationship should have been established in the earlier contracting phases. If the manager is new to the contractual arrangement, efforts will need to be made to understand the relationship that exists between the contractor and the acquiring entity and to develop a specific relationship for this phase as soon as possible. It is particularly important for the manager to understand the background to the relationship and be aware of any problems or issues that have arisen at earlier stages of the procurement process. The type of contract, its size and duration as well as the culture of the parties and the personalities of the people involved will influence the relationship between the parties. It is important to establish and maintain a constructive relationship and regular communication. Providing positive and constructive feedback will assist in maintaining such a relationship. Payments, including those for performance, should also be made without unnecessary delays, in line with acquiring entity procedures. It is also important to listen to the contractor, to identify any problems, address them promptly and explain decisions in an impartial way. It is better practice for entities to adopt a structured approach to managing their relationship with the contractor. This particularly applies to contracts which involve ongoing service delivery or the provision of consultancy services that extend over a reasonable period of time. In such contracts the management of the relationship with the contractor could consist of: • informal, day-to-day discussions and interactions between the contractor, the contract manager and relevant entity staff, and • formal meetings at pre-determined intervals with nominated personnel from both the acquiring agency and the contractor. A typical approach to managing relationships adopted in a long-term services contract is outlined below. |
|