Most contract risks and issues can be documented in your contract management plan or your risk management plan. Where significant risks are identified, consider preparing, on a scaled basis, a plan to formally address these risks. These plans are often contract management tools that are either embedded or referenced in the contract (to make them contractually binding). If required, draft and agree necessary plans as early as practicable to guide contract management processes.
Other plans that you may consider developing: | |
a. | Transition plans: If the contract is replacing an existing contract for similar goods or services, you may require a "transition in" plan at the commencement of the contract. Similarly, you may need a plan to "transition out" at the end of the contract. These plans detail transition tasks, timeframes, resources, communications, risks and management strategies. |
b. | Communications or stakeholder engagement plan: This formally defines who should be given what information, when that information should be delivered and what communication channels will be used to deliver the information. |
c. | Probity plan: A probity plan details the mechanisms for assuring probity within the management of the contract. Probity is the evidence of ethical behaviour, defined as demonstrated integrity, uprightness and honesty in the process. |
d. | Fraud control plan: This details fraud risks within the procurement and measures to mitigate the risks. |
e. | Security plan: Security risks can arise from the supplier accessing facilities or data or needing to integrate their products with entity systems etc. The supplier may have to meet very specific security policies and requirements. A security plan details mandatory security standards, procedures to be followed and required risk mitigation measures. It may also cover the protection of personal information and cyber security issues if applicable. |
f. | Supply chain risks plan (eg disruption of supply or modern slavery): Aspects of your supplier's supply chain could be geographically, ethically or environmentally unsound particularly in certain industries. This may result in the contracted goods not being delivered or reputational damage to your entity. A supply chain risk management plan details procedures for monitoring your supplier's supply chain and addresses any issues. |
g. | Disposal plan: An entity must dispose of goods in a manner that is lawful, efficient, economical, ethical and environmentally sustainable. If the goods received under your contract require specialised disposal treatment you may require a disposal plan. In some cases, the supplier may be contracted for the eventual disposal of the goods, but your entity will remain accountable for how the disposal occurs. |