Some of the key actions to consider include:

a.

Keep up-to-date records of who to contact. This is important where there is staff turnover (either in your entity or at the supplier's) or when individuals are in different locations. You should ensure all contact details are in your contract management plan.

b.

Manage and update contract documents, including variations or work orders, etc. This ensures contract documents are easily accessible and accurately reflect any agreed changes at a point in time. This also provides an audit trail (see section 2.12 Managing contract variations).

c.

Check on the currency of insurances, guarantees, indemnities and Statements of Tax Record (if any) as required by the contract. This is part of contract risk management.

d.

Maintain the contract management plan.

e.

Maintain other contract plans and schedules.

f.

Manage relevant correspondence relating to the contract, including contract reports, and formal notices or letters to suppliers, etc.

g.

Schedule meetings and performance reviews.

h.

Maintain and circulate meeting minutes, file notes and other records to relevant stakeholders.

i.

Ensure all parties follow correct delivery and acceptance processes.

j.

Provide financial control for the contract, including tracking expenditure (usually via a budget or spreadsheet), verifying invoices for payment and making timely payments to the supplier, etc.

k.

Maintain processes for identifying and tracking information regarding intellectual property and confidential information.

l.

Actively manage risks. This may be through a risk management plan. Maintain and update the risk register and risk management plan. Escalate issues if required.

m.

Process and manage contract variations.

Warning: It is possible to unintentionally vary the contract through conduct (eg in an email or through a conversation) so be aware of this risk in all your communications with a supplier (See section 2.3 Unintentional variations and waivers through conduct, and section 2.12 Managing contract variations).

n.

Monitor the contract end date and options for extension. Take timely actions to ensure there is a continuous supply of goods or services required by your entity. Careful management of end dates is important (see section 2.13 Managing contract extensions or renewal). There may be termination or extension option requirements in your contract that you must follow.

Warning: You cannot extend an expired contract, as legally the contract no longer exists. This means that once you have passed the end date of the contract, you cannot extend the existing contract and will need to establish a new one.

Verifying invoices

When verifying an invoice, you should check:

• The description of goods or services on the invoice matches the description in the contract and the quantity matches a delivery receipt or an acceptance certificate and does not exceed the contracted amount.

• The invoice has been correctly calculated (eg per unit cost X number of units).

• GST has been correctly included.

• The invoice date is after the goods or services were received (unless in a case where payment in advance has been agreed).

• There are no other obvious errors and the invoice meets any other contract requirements.

In some circumstances, other payment methods may be included in the contract (eg milestones, progress or start up payments). If so, you will need to verify invoices according to these terms, which may include things like evidence of milestone achievement and payment amounts.

To mitigate the risk of fraud, it is good practise to have at least two separate people independently verify parts of the invoice payment process. This could include the user verifying if the correct goods or services were received, the contract manager verifying compliance to contract terms, a financial manager approving the payment and another person entering the information into the financial management system. This process should be proportionate to the size and complexity of your contract.

Making payments

You should only make a contract payment according to the contract provisions.

Generally, you should only pay an invoice when:

• you have received the goods or services and they meet the required standards

• the supplier is compliant with the contract and other contract payment terms

• you have received an accurate and correct invoice according to the contract

• you have obtained all necessary authorisations and approvals.

Your contract may require a formal acceptance certificate if the contract has a formal acceptance process. Your entity may also have additional requirements under its Accountable Authority Instructions. Check with your CFO area.

It is important to make payments on time. Time-frames are set out in your contract and should be in accordance with Resource Management Guide No. 417 - Supplier Pay On-Time or Pay Interest Policy. Note that RMG 417 applies to most Non-corporate Commonwealth Entity (NCE) procurements "even if a written contract or approach to market fails to include clauses that reflect this policy, or if no written contract exists between the NCE and the supplier".

Be aware that if your entity and the supplier have the capability to deliver and receive electronic invoices (e- invoices) through the Pan-European Public Procurement On-Line (PEPPOL) framework and have agreed to use e-invoicing, the maximum payment term is 5 calender days as specified in RMG 417.

Delayed payments can incur interest and undermine your relationship with the supplier.

Managing resources

Your entity needs to adequately resource the management of its contracts. This means providing you with senior management support, necessary expert advice and personnel with relevant skills (or the opportunity to obtain them). These skills include contract management, and may include interpersonal, subject matter and project management skills.

Want to know more about managing resources?

The Department of Finance has issued a range of Resource Management Guides that provide you with helpful information https://www.finance.gov.au/government/resource-management/list-number.

Keeping records

You must keep all relevant documents to comply with the Archives Act 1983 (Cth). Relevant documents include documents that record decisions and/or approvals (including documents with signatures, the signed contract and any contract variations).

You should file documents consistent with your entity's records management practices.

A systematic approach to record keeping at the beginning of a contract will assist your entity to:

• provide evidence of business conducted and decisions made

• respond to Freedom of Information requests

• manage legal and other risks

• meet its accountability obligations.

As such, keeping good records should be seen as an integral part of, rather than incidental to, contract management activities.

Want to know more about keeping records?

Resource Management Guide 209 - Guidance for Commonwealth entities on the requirements to keep non-financial records can be downloaded from https://www.finance.gov.au/government/resource-management/list-number

PGPA Act Section 41 - a Commonwealth entity must cause accounts and records to be kept that properly record and explain the entity's transactions and financial position. https://www.legislation.gov.au/Details/C2013A00123