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The terms “contract management” and “contract administration” are often used synonymously. However, “contract management” is commonly understood as a broader and more strategic concept that covers the whole procurement cycle including planning, formation, execution, administration and close out of a contract and goes beyond the day to day “administrative” activities in the procurement cycle.
Contract management is similar to project management. Each contract is a mini-project. It has a unique goal, consumes resources, has a beginning and end date, and requires coordination and planning of relevant activities, as well as documentation in a contract file throughout the process.
Contract management includes monitoring and documenting performance. Depending on the organization and goods or services procured, daily/regular monitoring of the contract may be primarily the responsibility of the requisitioner.
In all situations, the procurement officer is responsible for following up and ensuring that the actions of the supplier and the UN organization are in line with the contractual responsibilities, that the contract is amended to reflect agreed changes in circumstances, and that any claim or dispute is resolved amicably according to the terms of the contract.
Payment for the goods or services should be handled independently from the procurement function, while contract close out again is the responsibility of the procurement officer.
Contract file and documentation
The contract file should be opened by the procurement officer, and the contract should be carefully analysed, taking note of the rights and obligations of each party. Any issues requiring clarification or change of the contract should be fully documented in this file. (The requisitioner will normally have a separate file, with copy of the contract, as part of the project management files.)
Although practice may vary among organizations, the following documents normally are part of the contract file:
1.original of contract and all amendments
2.all related communication with the supplier (electronic, internal and external correspondence)
3.copy of the winning offer
4.award documents
5.minutes of meetings
6.notes of phone conversations
7.reports
8.pictures, video films
9.proof of receipt of goods
10.proof of payment
11.supplier assessment report
12.acceptance report from requisitioner/client.
Control points:
Observing and collecting information should be directed at four general control points. These include:
1.cost control
2.schedule control
3.compliance with specifications, terms of reference, statement of work (quality assurance and control)
4.compliance with terms and conditions, paperwork requirements, and administrative aspects of the performance.
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82148419, 86-755-82143512, or emailing to info@citilinkia.com