6.1 Contract Managers
6.2 Purchasers
6.3 End Users
6.4 Contractor Performance Management (CPM) Best Practice Unit
6.5 Heads of Office
6.6 Line Managers
6.7 Contractors
6.1 Contract Managers
6.1.1 Contract Managers are the focal point for the day-to-day management of the Scottish Parliamentary Corporate Body's (SPCB) interests in contractual relationships, and their effectiveness is pivotal. The role requires specific skills and competencies.
6.1.2 The Contract Manager must have a good knowledge of the contract and be clear about the responsibilities of the SPCB, the Contractor and any other relevant parties.
6.1.3 The Contract Manager must be properly empowered via a formal written letter of appointment from Procurement setting out their responsibilities, authority and reporting lines.
6.1.4 Their job description must include the allocation of sufficient time for CPM activity and their job objectives must include CPM targets, to ensure effectiveness, accountability and the delivery of measurable results.
6.1.5 They should be empowered to manage and be prepared to act decisively if required without the need for continual reference upwards. The Contract Manager should be pro-active in problem identification, rather than merely reacting to problems when they occur.
6.1.6 The Contract Manager must receive training in CPM techniques before assuming responsibility.
6.1.7 A summary of the Contract Managers key roles & responsibilities and a checklist of dos and don’ts can be found below:
- Working closely with the Supplier during the early stages to ensure a smooth introduction of the contract.
- Day-to-day management of SPCB’s interests for individual contracts.
- Monitoring and reporting on performance against the contract and budget, including Key Performance Indicators (KPI) scoring.
- Collating on-going budget expenditure to date on a monthly basis. This information should be sent to Procurement Services quarterly and will be included with the publication scheme information.
- Chairing regular CAS Review Meetings with Contractors – both assessing past performance and setting future targets – and hold regular operational meetings.
- Feeding back information on Contractor performance - both good and bad - to Procurement in a systematic and timely manner via KPI Scoring Sheet.
- Maintenance of accurate records of all dealings with Contractors – both written and oral – especially important if problems subsequently arise.
- Early action to tackle sub-standard Contractor performance – gain commitment of Contractor to resolve problem within agreed timescale – escalate to Procurement if performance fails to improve.
- Regular review of risk management profiles of contracts, devising strategies to minimise risks, including Business Continuity Plans (risk registers for business critical contracts to be reviewed at least every 6 months).
- Involvement in management of contract variations (although the Purchaser has responsibility for enacting these contractually).
- Accepting goods/ signing-off service performance.
- Approving invoices and dealing with invoicing errors or disputes & ensuring that costs do not exceed those agreed contractually.
- Managing relationship problems between the Contractor and SPCB, not just poor Contractor performance - e.g. changes to requirements/user needs, conflict of objectives, unforeseen events – aim for early diagnosis.
- Eliciting regular feedback from users of the service or product (where applicable) in a structured manner.
- Working with Contractor and Procurement to develop mutually advantageous continuous improvement opportunities.
- Striving to continuously improve Contractor performance.
Contract Manager Checklist
Do |
Don't |
Do ensure that you:
- know the contract budget
- understand the outputs set out in the contract and the link to cost
- understand the key conditions of the contract
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Don't let the Contractors manage you - the Contract Manager is responsible for managing the contractual relationship
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Do ensure that you devote enough time to manage the contract effectively, specifically during the early stages
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Don't allow the relationship with the Contractor to become un-business like
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Do receive contract management training |
Don't agree major contract changes without procurement and legal advice |
Do adhere to SPCB budgetary control and procurement policies |
Don't accept lavish Contractor hospitality |
Do, critically, ensure that you have senior management support |
Don't place contract management at the bottom of a long list of things to do |
Do be empowered to make decisions within agreed terms of reference |
Don't negotiate without help from a skilled practitioner |
Do continuously monitor Contractor performance against predetermined criteria |
Don't allow problems to persist without addressing them |
Do consult colleagues in Procurement Services for guidance |
Don't listen to rumours rather than facts (users can sometimes criticise and complain without being specific) |
Do tackle poor performance vigorously |
Don't tolerate poor quality |
Do assess and manage risk effectively |
Don't attempt to transfer inappropriate risks to the Contractor |
Do address problems as they arise - do not procrastinate |
Don't allow the Contractor to undermine the Contract Manager’s position by making direct contact with their superiors |
Do manage contract change effectively and formally (the Purchaser will enact this contractually) |
Don't seek to terminate the contract without legal, procurement and senior management involvement and support |
Do keep your users informed |
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Do share performance data with the Contractor |
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Do transfer optimum contract risk to the Contractor |
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Do keep full and detailed contract records |
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6.1.8 Further information on the responsibilities of the Contract Manager can be found in the Contract Administration and Managing Changes sections.
6.2 Purchasers
6.2.1 A summary of the Purchasers key roles & responsibilities is detailed below.
Key Ongoing Purchaser CPM Activities
- General support/ advice to Contract Manager on commercial/ contractual issues
- Assessing Contractor performance against commercial KPIs, according to demarcated role
- Regular attendance at Contractor Assessment Summary (CAS) Review Meetings - especially pertaining to commercial & contractual issues
- Negotiating & actioning contract variations (in conjunction with business area) – including annual price variations (where appropriate)
- Intervening in incidences of contract dispute/ breach, supporting Contract Managers as necessary
- Facilitating contract extensions (where applicable)
- Working with the Contract Manager and Contractor to develop mutually advantageous continuous improvement opportunities
- Research trends/developments in the particular commodity market throughout the life of the contract. This will involve continual market research and a significant focus on strategic aspects.
- Undertaking financial stability checks on Contractors wherever required (business critical contracts to have financial stability checks undertaken at least annually).
6.2.2 Further information on the responsibilities of the Purchaser can be found in the Managing Changes section.
6.3 End Users
6.3.1 A summary of the end users key roles & responsibilities is detailed below.
Key Ongoing End User CPM Activities
- Reporting incidents, problems & issues promptly and accurately
- Monitoring customer aspects of product/ service quality and feeding back views to Contract Manager via the CAS process
6.4 CPM Best Practice Unit
6.41 The CPM Best Practice Unit within Procurement Services has overall responsibility for:
- 1. Day-to-day operational management of the CPM Framework;
- Receipt/processing of CPM data received from business areas, e.g. KPI scores, continuous improvement initiatives, reports of sub-standard Contractor performance, etc.;
- Formulation, co-ordination and delivery of CPM refresher training to Contract Managers and other key stakeholders;
- Carrying out periodic audits to (a) assess the level of organisational CPM competence; and (b) ensure consistent and effective application of the CPM methodology.
6.5 Heads of Office
6.5.1 Heads of Office are accountable for contract performance therefore it is essential that they give Contract Managers the required level of support, and take an active interest in this important aspect of their job role.
6.6 Line Managers
6.6.1 Line managers should also assist in the identification and deployment of adequate resources, and the incorporation and review of CPM-oriented objectives, competencies and training via the Performance Management System.
6.7 Contractors
6.7.1 A summary of the Contractor key roles & responsibilities is detailed below.
Key Ongoing Contractor CPM Activities
As a minimum, ensure performance meets the terms of the contract (including KPIs) via robust monitoring system
- Reporting on performance via (a) attendance at regular CAS Review Meetings; (b) provision of management information to Contract Manager
- Responding in a timely manner to changing customer needs
- Taking remedial action to resolve incidences of sub-standard performance in a timely manner, escalating within own organisation where appropriate
- Negotiating contract variations with customer
- Striving for continuous improvement in all activities
- Submission of timely and accurate invoices