Contract management
This presentation is the property of its rightful owner.
Sponsored Links
1 / 34

Contract Management PowerPoint PPT Presentation


  • 65 Views
  • Uploaded on
  • Presentation posted in: General

Contract Management. Presentation by Simon Gresham. About Me. 30 years working in contracting environment Started in catering Worked on first local authority compulsory competitive tendering Moved on to market testing of central government services Worked on major accommodation PFIs

Download Presentation

Contract Management

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Contract management

Contract Management

Presentation by

Simon Gresham


About me

About Me

  • 30 years working in contracting environment

  • Started in catering

  • Worked on first local authority compulsory competitive tendering

  • Moved on to market testing of central government services

  • Worked on major accommodation PFIs

  • Advisor to a range of clients and contractors

  • Now advise on small and large procurements mainly covering facilities management

  • Live in Norfolk


Contract management why

Contract Management Why?

“ Even the best outsourcing contract means nothing if its contents are forgotten, milestones are missed or obligations are not tracked or compliant to agreed service levels”

2012 report on global outsourcing


Contract management a definition

Contract ManagementA Definition

“The management of contracts made with suppliers, customers, partners, or employees”


Contract management1

Contract Management

“Contract management is the process of managing contract creation and execution for the purpose of maximising financial and operational performance and minimising risk”

Wikipedia


Contract administration

Contract Administration

“ The processes and practices that underpin the contract management function – the monitoring of quality and cost, administration of the invoices, paperwork, purchase orders”


Contract management2

Contract Management

How many of you actively manage your contracts?

What success stories do you have?

What disasters/nightmares have you had?


Current contracting agenda

Current Contracting Agenda?

  • Drive for savings

  • Local services passed down to Town/Parish Councils

  • More outsourcing of non core/back office services to save money

  • Debate – in house or private sector – which is best?

    Are there alternatives?


Current local authority agenda

Current Local Authority Agenda?

  • Joined up services

  • Linking with other Authorities

  • Joint Ventures

  • Greater use of the voluntary sector (The Big Society?)

  • More resident involvement/views

  • More reporting – greater visibility and accountability


Current parish town council issues

Current Parish/Town Council Issues

  • Standing orders being reviewed

  • Updates in contracting procedures

  • Difficulties finding contractors

  • Too many contractors?

  • Deciding who to invite – shortlisting

  • OJEU

  • TUPE

  • Specifications and documents

  • Evaluation of bids

    Do you have any current issues?


Contract management ground rules

Contract Management Ground Rules

  • Be clear about the process you are adopting

  • Be clear about Standing Orders and internal Council processes

  • Involve the right people in the Council

  • Examine the feasibility

  • Gather the user’s requirements so that you get want you want

  • Make sure you get something back from the supplier that shows they can deliver and for what price

  • Evaluate the proposals on a like for like basis

  • Manage the arrangement once you have agreed it


Contract management

The Overall Process

Before you go out to contract, seek quotations or tenders

Feasibility

study

Competition

Strategy

Project

Plan

What couldwe do?

How could wedo it?

What is ourplan?


Contract management

The Overall Process

Going out to contract, seeking quotations/tenders

The

Competition

*External Bids

*In-house Bids

Evaluation

Procurement

Strategy

Specification

or Brief

How do we go about it?

What do we want?

Let us see what is on offer?


Contract management

The Overall Process

After you have gone out to contract and selected a provider

The Client Side

Contract

Administration

Implementing

the partnership

Are we set up to manage it?

Let us now manage it?

Let us see how well we did?


The project plan

The Project Plan

Receive

Expressions of

Interest (PQQ)

Produce

Specification/Brief

Determine

Service

Requirements

Advertise the

Service/Supply

Issue

Invitation

to Tender/

Quote

Receive

proposals

Shortlist

Providers

Evaluate

proposals

Manage

the Contract

Start the

Contract

Clarification

with first

choice

Award the

Contract


Mobilisation activities

Mobilisation Activities

  • Staffing and communications (TUPE)

  • Recruitment and training

  • Pricing and payments

  • Contractual and relationship (reporting)

  • Assets and infrastructure

  • Implementation (may be over time rather than immediately)


Managing the contract

Managing the Contract

What do you need to make it work?

  • A clear specification

  • Sensible hand-over arrangements

  • Effective communications

  • Recognition of teething problems


Managing the contract1

Managing the Contract

  • Clairvoyant contractors do not exist

  • Ill informed clients tend to get annoyed

  • Avoid the ‘them’ and ‘us’ mentality

  • Be consistent

  • Avoid personality clashes

  • Develop the relationship


Specifications

Specifications

  • Input versus Output

  • Can you ever achieve a totally output based approach?

  • What do contractors think?

  • What are your ‘Imperatives’?

  • If you go for an output approach, do you accept the risks?


Contractor monitoring

Contractor Monitoring

Onus on the Contractor to monitor their own performance

  • Completion sheets

  • Handheld recording

  • Sign offs from the client/customer

  • Photographic proof

  • Response times

  • Rectification approach and timescales


Client monitoring

Client Monitoring

  • Checks that contractor records are correct

  • Random sampling approach

  • Get customer feedback

  • Monitor complaints

  • Focus groups


Reporting

Reporting

  • Monthly report

  • Report against KPIs

  • Client review meeting


Example report contents

Example Report Contents

Quality

  • Quality Audit scores

  • Remedial work

  • Response times

  • Periodic tasks

  • Customer complaints

  • Customer surveys


Example report contents1

Example Report Contents

Workforce

  • Attendance

  • Absence

  • Training

  • Recruitment

  • Staff turnover

  • Uniforms

  • ID and Vetting

  • Discipline/Grievance

  • Workforce surveys


Example report contents2

Example Report Contents

Health, Safety and Environment

  • Accidents/incidents

  • Safety audits

  • Risk assessments

  • Fire safety

  • Safety training

  • COSHH

  • Recycling

  • Environmental activities


Example report contents3

Example Report Contents

Management, Reporting and Administration

  • Management information

  • Financial performance

  • Cost reduction

  • Invoicing

  • Contract variations


Financial management

Financial Management

  • Depends on pricing mechanism

    • Lump sum – invoice for one twelfth per month

    • Unit prices – invoice against pricing schedule

  • Need to reconcile against activity

  • Need to manage “overs” and “unders”

  • Payment tied to performance - defaults mechanism


Change

Change

  • Change control mechanism built into contract

  • Basis of pricing change

  • Business cases

  • Client led decision making

  • Mechanism and escalation process


Failure

Failure

  • Default mechanism in the contract

    • 3 strikes and you are out?

    • Match to Key Performance Indicators

    • Dialogue

    • Evidenced based

    • Escalation process

  • Ability to earn back service credits


Example kpis grounds

Example KPIs (Grounds)


Example kpis grounds1

Example KPIs (Grounds)


Success

Success

  • Partnership principles

  • Balanced scorecard

  • Innovation

  • Gainshare

  • Social responsibility

  • Apprenticeships


Successful contract management

Successful Contract Management

“ Even the best outsourcing contract means nothing if its contents are forgotten, milestones are missed or obligations are not tracked or compliant to agreed service levels”

2012 report on global outsourcing

“ The aim must be to develop a partnership with your contractor which is mutually beneficial and long lasting”

Simon Gresham


Contract management3

Contract Management

Clinic – Your Questions Answered?

For further information about Contract Management or Contracts and Tenders please feel free to contact Simon Gresham on [email protected] or 07798 623750


  • Login