4/28/20151 presented by nakabago john 0772406407 contract management and administration ippu...

04/18/2304/18/23 11PRESENTED BY NAKABAGO JOHN PRESENTED BY NAKABAGO JOHN

07724064070772406407

CONTRACT MANAGEMENT CONTRACT MANAGEMENT AND ADMINISTRATIONAND ADMINISTRATIONIPPU PRESENTATIONIPPU PRESENTATION

JOHN NAKABAGOJOHN NAKABAGO

04/18/2304/18/23PRESENTED BY NAKABAGO JOHN PRESENTED BY NAKABAGO JOHN

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What is Contract administration?What is Contract administration?

• The process of managing the relationship between two parties, a buyer and seller with the aim of attaining the procurement objectives.

• It involves managing of the cost details, process , quality and time lines from the beginning to the end of the contract delivery.


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Aim of contract managementAim of contract management• To obtain the goods and services as

agreed in the contract

• Achieve value for money

• Ensure that the buyer performs according to terms of the contract.

• Building a good working relationship between customer and provider.


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What does contract administration entail?What does contract administration entail?

• Clarification of the roles and responsibilities of the various stake holders

• Ensuring mutual understanding of the rights, obligation and responsibilities of both the contractor and the buyer.

• Addressing the risks that may arise, • Handling any appropriate changes where

necessary (variations)


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• Supervising or monitoring the contract against key performance indicators (e.g. procedures, cost control, quality and timeliness )

• Measuring and authorizing works• Delivery inspection• Paying according to agreed terms and

avoiding overpayment.• Compiling and disseminating of reports on

performance

Variations Variations

• Variations can be in terms of scope and/specifications

• Variations can be budget neutral or lead to a change in contract price

• In making variations we have to follow the relevant procedure.

•


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Benefits of effective contract administrationBenefits of effective contract administration

• Improved quality of service ,works and goods delivered

• Improved customer focus.

• Timely delivery

• Achieving value for money

• Cost control and savings.

• Reduced crisis management

• Avoiding disputes


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• Evaluation of the specifications against contract performance and identification of changes that would benefit future contracts


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Role of the contract managerRole of the contract manager

• Study closely provisions of the contract and be able to understand and interpret it, namely; -

– Payment terms (i.e. advance, stages )

– Full particulars of the contractorawyers.


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– The rights and obligations/liabilities of the parties in the event that something

– Dispute resolution procedure.

– Who can terminate the contract and in which circumstances.

– Contract duration, and options for extension

– contract price schedule.


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Other rolesOther roles

• To develop a contract management plan

• Plan, organize and attend site meetings

• Ensure supplier or contractor is paid promptly

• Approve or process for approval the appropriate variations

• Arrange for dispute resolution


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• Where there is a supervising engineer, the contract manager to ensure that they perform their duties without compromise.

• Liaise with the various stake holders and ensure that their expectations are managed

• Prepare performance reports.


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Developing Contract management planDeveloping Contract management plan

– Define who is involved in managing the contract; specify their responsibilities


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• The contract management plan should define; -– What reports are required – What content should include in each report – The format of presentation of the report– Who is responsible for producing the report – The frequency of reporting– To whom the reports should be distributed

Critical success FactorsCritical success Factors

• Adquate preparation. o Developing proper specifications that meet

the needs of the organization.

o Effective evaluation procedures and selection will ensure that the contract is awarded to the right provider.

The right contractThe right contract.. • The contract is the foundation for the

relationship.• It should be clear on:– Identification and allocation of risk, – specifications – procedures for dispute resolution.


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• Good corporate governance• Effective monitoringo The performance under the contract must

be monitored to ensure that the customer continues to get value for money.


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• Relationship management. o Mutual trust and understanding, openness,

and proper communications are as important to the fulfillment of the formal contract terms and conditions.

• People with the right skills o There must be people with the right

interpersonal and management skills • A contract manager (or contract

management team) should be designated early on in the procurement process.

• Flexibility. o Management of contracts usually requires

some flexibility on both sides and a willingness to adapt the terms of the contract to possible changes.

o Problems are bound to arise that could not be foreseen when the contract was awarded.

• Change management. o Contracts should be capable of change (to

terms, requirements and scope)


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Common problems in contract administrationCommon problems in contract administration

• Limited time for contract administration. Contracting officials often allocate less time

• Unclear roles and responsibilities.

• Lack of a well defined relationship between the contracting organization and the contractor


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• Unclear statements of work or specifications.

• Poor monitoring.

• Delayed payments.

• END GOD BLESS YOU


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4/28/20151 presented by nakabago john 0772406407 contract management and administration ippu...

Documents

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contract performance

contract delivery

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aim of contract management

performance slide

contract manager study

contract management