Clear contract administrative procedures will help all parties understand who must do what, when it has to be done and how it has to be done. These procedures should be clearly set up at the beginning so that everyone starts with a shared understanding.
At the very least, there should be processes to:
a. verify that
i. deliverables itemised in an invoice have been delivered and accepted by the entity and
ii. the supplier has fulfilled the required obligations under the contract prior to making a payment
b. verify invoices are correct and in accordance with the contract
c. ensure payments of correctly rendered invoices are made to the supplier within the time frame stipulated in the contract and in line with the Government's payment policy
d. track expenditure to ensure it does not exceed the value of the contract
e. ensure that the appropriate delegate has approved the expenditure and you have this documentation.
In this phase, you may also set up the processes and procedures to: | |
a. | Identify funding source and budget acquittal/accountability/reporting requirements. |
b. | Identify the method or process to reconcile and pay invoices, including the level of detail to be provided in invoices (eg purchase order numbers, email address for contact officer, description of work etc.), and the format for electronic invoices. |
c. | Set up record keeping systems (budget, funding, invoicing, performance, contract variations etc.). |
d. | Identify and promulgate in advance a schedule of meetings for parties to the contract, end-users and stakeholders, giving the time, place and purpose of the meeting. This gives the best opportunity for the right people to attend contract management meetings. |
e. | Identify and promulgate details of any ordering procedures to be followed by users wishing to obtain goods or services under the contract. |
f. | Ensure any conflict of interest declarations or deeds of confidentiality from relevant personnel (entity and supplier) have been provided (see section 2.1 Behaving ethically). Include reminders of these obligations in agendas for contract management meetings if appropriate. |
g. | Ensure all insurances, indemnities, guarantees and Statements of Tax Record required from the supplier have been received and recorded. Set reminders to ask for these documents if they need renewing. |
h. | Ensure you have copies of any standards relevant to your contract. |
i. | Include relevant information in your contract management plan (see step 0.1). |