The risks that may arise during contract closure are likely to vary in accordance with the way the contract is ended.
When a contract ends because all obligations have been fulflled, risks to successful closure include:
• the failure to return all relevant documents, materials and records, and
• non-submission and payment, where applicable, of all invoices.
In the transition to another contractual arrangement, risks can include:
Sources of risk | Examples of risks | In the transition to another contractual arrangement, risks caninclude the failure to agree final payment details. |
Contract materials, information and records | • Failure to return all required materials, information and records within agreed timeframes and/or in the required format | |
Payment | • Failure to agree final payment details • Submission by contractor of an invoice for unforeseen additional costs | |
Transition arrangements | • Failure to appropriately manage the transition out by the contractor • Not undertaking arrangements for a new procurement early enough in the contracting cycle • Not managing the process of re-tendering in line with probity requirements, particularly where the existing contractor is re-tendering • Disruption to the provision of goods and services • Not addressing performance problems with an existing contractor who is re-engaged • Not reviewing value for money when contracts are extended |
The Actions and Responsibilities Matrix at the end of this part outlines a typical sequence of steps, the key stakeholders involved and documents produced in ending the contract.