A contract management plan contains key information about how the contract will be managed over its life to ensure that value for money is achieved. It should be a working document that assists you to manage the contract. Your contract management plan should reflect the level of complexity and risk associated with your contract. Transactional and routine contracts may not need a written contract management plan. More complex or higher risk contracts would usually require a detailed contract management plan.
Your contract management plan should detail commonly referenced information about the contract. It should not replicate contract information but should provide references to that information (eg relevant contract clauses, location of registers or plans). This is to ensure that, should information change in the contract or other documents, it is not contradicted by the contract management plan. You should use your entity's contract management plan template if available.
A contract management plan may contain: | |
a. | Key activities: A summary of key activities to be completed (including milestones/dates, contract expiry, notice periods, extension options, contract review timings and processes etc) and who is responsible for each activity. |
b. | Roles and responsibilities: A list of the main individuals involved in the contract, their positions, contact details and their responsibilities (for both the procuring entity and the supplier). |
c. | Risk management: Details of risks that have been identified and how and by whom they will be managed (for more complex contracts this may be a separate risk management plan). |
d. | Contract governance: Details of stakeholder engagement, contract oversight, process for the escalation of issues or disputes, internal reporting including content, frequency, and distribution of any reporting within the procuring entity, for example, monthly reporting to the senior management team. |
e. | Supplier reporting: The frequency and content of the supplier's reporting and timeframes for acceptance of reports including details of the reporting from subcontractors. |
f. | Meetings: A schedule of meetings and any standing agenda items, the process for the production and agreement of minutes and turnaround times. |
g. | Performance management: Details of how performance will be managed, including the reporting of Key Performance Indicators (KPIs) or Service Level Agreements (SLAs), how data will be gathered, verified and calculated, details of remedies or withholds etc. |
h. | Delivery and acceptance: Details of the acceptance process or specifics around the delivery of goods or services including standards to be met and audit requirements around those standards, compliance certificates etc. |
i. | Payments arrangements: Details of pricing including payment terms, milestones payments etc. |
j. | Specified personnel: Details of any specified personnel including position, supervisor, security clearances etc. |
k. | Supplier access and security: Detailing requirements for: • access to facilities or information systems • access and storage of assets • access, recording or storage of information or data, including personal information (as defined in the Privacy Act 1988 (Cth)) • security requirements, either personnel or cyber. |
l. | Insurance and guarantees: Details of any insurance certificates, bank guarantees, indemnities or Statements of Tax Record provided by the supplier, any expiry or renewal dates and storage location details. |
m. | Contract variations: Details of the process as defined in the contract for requesting variations to the contract and details of delegates. |
n. | Extension options or contract renewal: Details of options and information about review of the contract and the process for extending the contract as well as the lead-time needed for any re-tender or contract renewal. |