Contract management risk management guide
Produced in partnership with Elizabeth Bourlet
Contract management risk management guide

The following Risk & Compliance practice note produced in partnership with Elizabeth Bourlet provides comprehensive and up to date legal information covering:

  • Contract management risk management guide
  • Why you need to manage this risk
  • Top five priorities
  • 1. Set up the process for contract management
  • Contract ownership
  • Appropriate level of contract management
  • Storage and location of copy/original contract
  • Recording trigger points
  • Set up the process for contract management —mini action list
  • 2. Contract form and content—regulatory compliance
  • More...

Why you need to manage this risk

Contract management is often seen by the business as an activity which is aimed not at ‘finding fault’ but is instead designed to identify problems, find solutions and resolve issues before they become disputes. However, this approach is only part of best practice contract management.

You will be mindful that contract management not only enables the parties to a contract to work together to achieve the objectives of the contract, but also deals with contract compliance and any shortcomings, contract changes, extensions and renewals. All parties to the contract must fully meet their respective obligations, therefore contract management includes collating evidence of beach so that any eventual legal process can be substantiated. To cover all these aspects, the contract management structure must be planned from the outset of the procurement process.

This guide concentrates on the activities which need to be undertaken after a contract has been awarded and the service provision has commenced.

The key risks arising from poor or no contract management are:

  1. failure of the contract to fulfil its objectives—the contracted for service or item fails to meet expectations, fails to deliver the business and operational outputs, doesn’t meet project timescales or contract costs escalate

  2. failure to protect the rights of the parties—if performance is not adequately measured, monitored, documented and managed, measures in the contract to provide

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