NAO audit framework

Contract management

5. Is the contract being managed well, with costs and benefits being realised as expected?

5.1  Do the department and the contractor have comprehensive knowledge of service performance?

5.2  Is the contractor providing a service in accordance with the contract and are they actively managed by the department to meet or exceed requirements?

5.3  Is the department meeting its obligations?

Examples of relevant guidance

NAO good practice contract management framework

5.1  Service management is well structured; baselines are understood by both parties, and suppliers understand the service they are required to deliver. The contract manager ensures that the customer organisation provides the supplier with the information and contacts needed to deliver the service.

6.5  Incentive structures (financial or non-financial) relate clearly to desired outcomes, and are well managed and governed, with appropriate checks and approval mechanisms.