Project Management Framework
Execution - Contractor Management
How to use the Contractor Management Plan
For those acquisitions which involve a contractual agreement after the procurement phase, contract management is necessary. The purpose of the Contractor Management Plan is to ensure that the provider of goods and services satisfies all contractual obligations in a quality manner within schedule and within budget. At the initiation of the contract, the Project Manager should meet with contractor representatives and other pertinent agency staff to cover exactly what is expected during the contractual period. The legal nature of a contractual relationship makes it imperative that the project team be acutely aware of the legal implications of actions taken when administering the contract.
For Best Results
- Make the contract or Service Level Agreement available to necessary staff to assist in the monitoring process.
- Ensure the standards for measuring contractor performance are defined.
- Maintain contact with the contractor to review progress on a regular basis.
- Monitor contractor compliance with contract requirements.
- Maintain a summary list of contracts and their status to provide an at-a-glance summary of contract activity.
- Prevent non-compliance by identifying potential problems through the use of constructive, timely feedback and utilizing Issue Management procedures.
- Take immediate action in the event of noncompliance.
- Seek specialist advice when unsure of the rights of either party or the correct application of the contract.
- Monitor contract payments against budget and contract terms.
- Ensure that the contractors' expenditures are adequately documented.
- Review your contractor's supporting documentation and verify the contractor has fulfilled requirements before authorizing payment.
- Know your funding source requirements.
- Know the payment terms, including the rate and timing of pay and any conditions that must be met prior to payment, such as submission of reports.
- Ensure the contractor is not reimbursed more than once for any one service delivered.
- Ensure that contract changes or amendments are reflected in the appropriate project planning documents. (ie. Work Breakdown Structure within Scheduling and Task Plans for schedule changes, Change Management, Financial Management, Quality Assurance Management)
- Ensure any required audits are performed and received when due.
- Evaluate audit findings and the status of corrective action.
Also Consider
- Sending appropriate staff to agency contract management training, if it is offered.
- Seeking dispute resolution if there are unresolved issues.
- Negotiating a maintenance phase and related ongoing costs after the project development lifecycle.
- Performing client surveys to ensure satisfaction with the work being performed.
