|
Home > Typical Assignments > Contract Management
Contract Management
Introduction
An important element of procurement assignments we have been involved with in the past is helping our clients to create or run a robust contract management function.
Business Issues
Contract management deals with managing the supply of goods and services once the contract becomes operational, and the commercial team and the business/technical teams share responsibility for this function.
Approach
At entier we use an approach that we have proven time and time again. The clarity of scope of contract and roles and responsibility are key to successful contract management. This will help ensure that:
- Technical and commercial input is informed and effective;
- The client
- Technical and commercial input is informed and effective;
- The client obtains value for money;
- There is a consistent approach to procurement exercises;
- Legal, policy and contractual obligations are complied with; and a satisfactory audit trail is maintained.
Commercial team roles and responsibilities during contract management
We will ensure that the commercial team support the contracts and have the following responsibilities:
- development of the contract;
- handling contract disputes that cannot be resolved between the parties; and
- supplier relationship management
Business/Technical Team roles and responsibilities during contract management
We will ensure that the business/technical team deal with the day-to-day management of the contract as follows:
Supplies
- Ensuring that contract supply requests are authorised by appropriate managers;
- Ensuring that the accounting and purchase order processes are followed
Licensing
- Technical team should control licence usage.
- The Software Licence Asset Management team should be the focal point for monitoring usage of licences both during development and once components are in live service
- Licence requests should be handled centrally, ideally by a dedicated Software Licence Asset Management team.
Delivery of Supplies
- Monitoring the suppliers performance in delivery;
- Dealing with any deficiencies in supplies made under the contract (e.g. software bug problems);
- Ensuring any professional services are provided in accordance with the contract.
General
- Providing assurance the contract provides value for money;
- Providing supplier relationship management;
- Providing first point of escalation in the event of disputes;
- Escalating any problems that cannot be resolved to Commercial team as necessary.
entier have extensive procurement expertise in conjunction with two of their key partners:
NETbuilder who provide training on procurement methodology to provide skills transfer when engaged in contract reviews and/or consulting to help organisations achieve best market prices for Enterprise software. In addition they provide a comprehensive License Management & Compliance System, which integrates with industry tools and aims to identify cost savings, license rationalisation and demonstrate software license compliance. Customers of this tool include: Inland Revenue, Cable & Wireless, Healthcare Commission, HMRC and OGC buying solutions.
COMPASS which specialises in performance improvement through comparative analysis of efficiency and effectiveness.
Outcomes
Our experience of using our tried and tested processes provides ample evidence that our approach is effective.
entier has direct experience of assisting clients to create contract management processes in organisations as diverse as HM Revenue & Customs, Barclaycard to Egg PLc.
|
