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​​Creating a contract management plan

A contract management plan or Outcome Agreement Management Plan tracks the management of the contract and the relationship with the provider.

Using a plan is optional, particularly for low risk, low value, short engagements (less than NZ$50,000 in value and less than six months in duration). But we strongly encourage using a plan as part of good contract management practice.

Make sure you tailor your plan to the individual contract - the content and amount of detail will depend on the nature of the services, the clients and the contract.

The plan sets out:

  • who will be responsible for managing the delivery of the contract
  • the nature and extent of engagement with the supplier or provider
  • how issues and disputes will be resolved
  • potential risks, how they'll be mitigated and managed and by whom
  • a methodology and plan for evaluating the quality of delivery and the benefits achieved
  • key stakeholders (internal and external) and how these relationships will be managed
  • an exit strategy to be applied at the end of the contract.

If you are managing social services contracts, the Outcome Agreement Management Plan supports effective contract management.

Having a contract management plan ensures a smooth transition in case of a change in contract managers.

Templates

What to include in the plan

The plan is a living document - you should keep it updated throughout the contract.

If you decide you don't need a formal plan, we recommend you still complete and record the details below.

Administering the contract and managing the relationship

Include:

  • identification and contact details for each party’s contract/relationship manager
  • the contract/relationship managers’ key responsibilities
  • meeting requirements (chair, location and standard agenda items)
  • the process for agreeing and controlling variations and changes to the contract
  • a contract management risk plan.

Service delivery requirements

Include:

  • a timeline of key actions, deliverables, milestones and payment dates
  • the process for achieving and checking key deliverables
  • the quality and standards expected and their measuring process (such as KPIs)
  • monitoring and reporting requirements (frequency, type, content and distribution)
  • guidance on any agency policies or procedures that apply to the supplier (if appropriate).

Financial details

Include:

  • payment procedures and frequency
  • invoicing requirements (if not in the contract).

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