This part of the Guide discusses issues involved at the end of a contract.

A contract can be discharged in a number of ways. A contract can end because all obligations under the contract have been fulflled, that is, the contract has ended by performance. Contracts can also end by mutual agreement or discharge; release; waiver, novation or substitution; and accord and satisfaction. Contracts can also be discharged in other circumstances, including when not all obligations are complete or for convenience through: frustration; discharge by breach; repudiation or termination for convenience. The decision to end a contract when not all obligations are complete or for convenience needs careful consideration regarding who will provide the goods and services to the acquiring entity if there remains a requirement to do so. It may not be possible to identify and retain an alternative supplier quickly, at reasonable value for money and in line with due process. Equally it may not be possible to continue to operate under the current arrangement if satisfactory goods and services are not being supplied. A summary of the ways a contract can be ended is set out at Appendix 6.1.

There can be legal subtleties in some forms of termination, and contract managers are encouraged to obtain appropriate professional advice in unusual or complex situations.

When a contract ends, the acquiring entity needs to undertake a number of steps to complete the contract appropriately. These include: obtaining all necessary contract material, information and clearances, making adequate provision for warranties and the termination of access to premises and systems.

There can be legal subtleties in some forms of termination, and contract managers are encouraged to obtain appropriate professional advice in unusual or complex situations.

At the completion of any contractual arrangement or as part of the transition to a new arrangement it is better practice to undertake an evaluation of the overall performance of the contractor and of the acquiring entity's management of the contract. Any lessons learned from such an evaluation should inform the development and management of ongoing or future contracting.

Key tasks

The key issues involved in ending a contract are:

dentify and manage risks.

Finalise administrative requirements.

Manage transition arrangements.

Conduct an evaluation.

Document lessons learned.

Keep records.

At the completion of any contractual arrangement or as part of the transition to a new arrangement it is better practice to undertake an evaluation of the overall performance of the contractor and of the acquiring entity's management of the contract.