Managing the Contract Checklist

This checklist could be used by the contract manager or a senior manager with management responsibility for oversighting a contract or contracts to gain assurance that the necessary governance arrangements are in place at the commencement of the contract. The ongoing management section of the checklist could be used periodically, say every three or six months, to check that the necessary actions are being taken to manage the contract.

Contract commencement

• Does the contract manager have the required level of skills and experience?
• Does the contract manager have a satisfactory level of understanding of the contract and of the relevant subject matter?
• Have risks to the management of the contract been identified and risk treatments identified?
• Is it clear who is responsible for implementing/actioning any necessary risk treatments?
• Has responsibility for all aspects of managing the contract been clearly assigned?
• Do delegations exist for the approval of contracts, contract variations and the approval of expenditure?
• Have all stakeholders been identified and arrangements agreed to obtain feedback/input throughout the life of the contract?
• Have the benefits of flow charting internal processes, e.g. dispute escalation arrangements, been considered?

Ongoing management

• Are contract payments linked to satisfactory contract performance?
• Are all invoices, and any supporting documents, checked to ensure they are in accordance with contract requirements and are in order to pay?
• Is timely action taken when contract performance is unsatisfactory?
• Are all variations to the contract agreed on value-for-money grounds?
• Are all amendments to the contracts subjected to formal contract variations? Is a record maintained of all contract variations?
• Where the contract does not meet agreed levels of performance, are any actions taken adequately documented? Where it is decided not to take action, is this decision properly approved and documented?
• For longer term contracts, is the contract subject to periodic review?
• Are any disputes addressed in a timely manner and satisfactory efforts made to resolve them?
• Is the contract being actively managed so that there is reasonable assurance that the contract outcomes are being achieved?

Contract extension/renewal

• Do systems/procedures enable the timely consideration of the need for contracts to be extended or renewed?
• Are all contract extensions justified on value for money grounds?
• Are there arrangements in place designed to ensure that probity issues are identified and addressed during contract extension and re-tender processes?

Ending the contract

• Has the contractor delivered all the required contract outcomes?
• Has the contractor met all their contractual obligations?
• Has the contractor returned all Commonwealth material, equipment or other resources used or generated during the life of the contract?
• Have all access arrangements been terminated?
• Has an evaluation of the contract been undertaken and, where appropriate, lessons learned been built into future contracting activities?
• Has the contractor’s performance been evaluated, properly documented, and feedback provided to the contractor?