Managing relationships

Overall responsibility

Each party nominates one person with the appropriate skills and experience as its representative to be responsible for the co-ordination and management between the parties over the life of the contract.






Maintaining a good relationship does not mean the terms of the contract are not enforced where this is wanted.

Weekly performance review meetings

Nominated representatives, including the contractor's service delivery manager and the acquiring entity's contract manager meet formally at least once a week to review performance. This meeting is aimed at discussing and resolving any minor issues relating to the performance of the contract.

Contract management committee

At least quarterly, or otherwise agreed, a formal meeting is held of this committee. The committee comprises senior people from the acquiring entity and the contractor as well as the contractor's service delivery manager and the contract manager. The purpose of the meeting is to formally monitor performance of the contract, consider any ways in which services may be improved, consider any amendments to service levels and resolve, where possible, any issues that remain unresolved from the weekly contract meetings.

Bi-annual senior management meetings

A meeting is held at six monthly intervals between senior executives of both parties. These meetings review matters that have been addressed at contract management committee meetings, review the overall relationship between the parties and consider opportunities for the contractor to contribute to the acquiring entity's business.

Maintaining a good relationship does not mean the terms of the contract are not enforced where this is warranted. It is about enforcing the terms of the contract in a professional manner based on evidence of contractual performance. Provided the acquiring entity has fulfilled its responsibilities, has provided early warning of performance problems and has maintained a professional relationship, enforcing the terms of the contract should be seen as a reasonable course of action and therefore one that should not adversely affect the relationship between the parties. Acquiring entities must enforce contract conditions as necessary to achieve Australian Government requirements.

Where performance is being discussed, the contractor should be given the opportunity to present material on any factors that have caused performance difficulties and to discuss any proposed remedial action.

Relationships should be managed in a professional manner and be based on cooperation and mutual understanding taking into account the need for probity and ethical behaviour.

Relationships should be managed in a professional manner and be based on cooperation and mutual understanding.