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Rule 35:
Contract Management Plan

Primary requirement

  1. Agencies must have a contract management plan that is right sized based on the contract’s value, complexity, risk, and duration.

Application

  1. Contract management plans must include:
    1. clear governance arrangements
    2. relevant and proportionate performance metrics against which suppliers will be measured
    3. appropriate and transparent performance monitoring provisions, including due diligence to be conducted.
  2. Agencies must: 
    1. conduct sufficient monitoring of contracts to ensure that commitments made in contracts are delivered and reported on
    2. keep records of their contract management activities.

More information

Contract management

Good contract management is vital to delivery and the overall health of the procurement system. Contract management includes tracking and monitoring delivery and costs, managing risks and relationships, and conducting reviews. It enables your agency to understand progress, identify issues and resolve them effectively.

If performance and delivery issues come to the attention of the Procurement System Leader, they may need to understand what contract management your agency has done.

A contract management plan should include the objectives of the contract, key terms and conditions, and the price. The contract management plan and level of contract management should always be right-sized for the procurement. A low-value, low-risk contract is unlikely to need any contract management beyond an email to the supplier once a year.

See the guidance on contract management.

Understanding your contract management responsibilities

See also:

Contract management – Audit New Zealand

Supplier relationship management (SRM)

Agencies should use Supplier relationship management (SRM) when there are strategic objectives they want to achieve from their contracts (like secure better relationships with key suppliers). SRM enables agencies to categorise suppliers based on the relative value they provide to the agency, and focus their contract management actions accordingly.

See guidance on how to conduct an SRM exercise.

Introduction to supplier relationship management

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