CONTRACT MANAGEMENT PLAN TEMPLATE March 2002 G:\Procurement and Projects\Basis\ProcPolicy\ContractMgtPlan_Template.doc Department of Treasury CONTRACT MANAGEMENT PLAN FOR (Insert Title) BACKGROUND (Insert Background information) (Example – Include brief summary of the purchasing process, references to source documents, reason for the contract, objectives, options considered, analysis undertaken and key assumptions.) Note: The background should be sufficiently comprehensive to serve as a reference guide for situation to guard against loss of knowledge due to staff redeployment. CONTRACTING PARTIES Contractor (Insert Contractor details) (Example – Include Company name, phone/fax numbers, ABN, profile of organisation and contact details such as who has the authority to approve changes.) Client (Insert Client contact details) (Example – Include Agency name, phone/fax numbers, their involvement and key responsibilities in the contract.) Contract Manager (Insert Contract Manager contact details) (Include key responsibilities and full time employee (FTE) allocation.) Note: In cases where a separate contract is let for project or contract management, provide details and responsibilities of the management contractor. Major Stakeholders (Recommended) (Insert contact details and area/reason for interest.) CONTRACT DETAILS Insert complete copy of information contained in the contract for each of the headings below. Statement of requirements (Insert appropriate contractual clause/s) Service Standards Expected (Insert appropriate contractual clause/s) Pricing and Remuneration Arrangements (Insert appropriate contractual clause/s) Contract Duration (Insert appropriate contractual clause/s) Note: Include option or renewal periods. Key Conditions of Contract (Insert appropriate contractual clause/s) (Example – clauses such as insurances, warranties and performance /bank guarantees.) Assets/Document Register (Delete if not applicable) (Insert assets/documents register) (Example – This register provides an up-to-date list of all relevant documents (including purpose, current version/amendment status, location and synopsis). CONTRACT MANAGEMENT For each of the sections below, include the desired objective and methods/procedures to be followed (in some cases these will be included in the contract), a summary of the development process including key facts and assumptions, and references to and location of the source data. An activities checklist should be developed for each section. Stage 1 – Initial Contract Award Transition (Delete if not applicable) (Insert Transition responsibilities and Schedule.) Relationships (Delete if not applicable) (Insert Partnering/Alliance Board (as applicable).) Note: If the contract is a partnering/alliance arrangement the following details should included: • the partnering/alliance charter; • joint management details; • open book arrangements. Statutory/Regulatory Requirements (Insert contractual clauses specifying method/procedures to be followed.) (Example – The identification and treatment of: • Occupational Health & Safety; • Environmental; • Financial; • Industrial relations; • Human resources; and/or • Commonwealth, State and Local Government licences and approvals.) Project Schedule (Identify and insert a list of and schedule for activities or tasks.) Stage 2 – Contract Administration Risk Identification and Management Strategies (Insert information on risk planning that has been undertaken.) (Insert information on decisions to treat this procurement as a high risk project such as construction work, Information Technology services or facilities management.) (Attach Risk Management Plan) Note: Risk assessment and management strategy should include: • an explanation of each risk; • how the risk is to be managed; • what action is to be taken on occurrence of any of the identified risks (risks may vary during the contract and the contract management plan (CMP) will need to be updated accordingly). Performance Monitoring and Reporting (Insert monitoring methodology and schedule) (Insert reporting requirements) Note: the contractor’s performance must be assessed objectively against predetermined, clearly understood and agreed criteria. (Example – Identify main services to be provided, critical success factors, key performance indicators and milestones. Develop and document the performance provisions as part of the risk management strategy.) Note: Include reasons for any variation from performance targets. Finance and Budgets (Insert invoicing and verification procedures.) (Insert incentive or gain-sharing arrangements.) (If applicable) (Attach payment schedule.) Note: Agencies should be aware of the Government Contractual Debts (Interest) Act 1994. Guideline for Contract Management section 2.2.6 Payment refers. Insurances (Insert contractual clauses specifying procedures whereby the contractor provides evidence of the existence and currency of insurance policies required by the contract.) (Attach Certificate of Currency, Cover note or like documentation.) Dispute Resolution (Insert appropriate contractual clauses.) Note: Include procedures specified in the contract for the contract manager to monitor and report on the contractor's performance including the severity of any breaches, the need to seek redress and sources specified for redress. Contract Change/Variation (Insert appropriate contractual clauses.) (Example – Procedures to be followed for variation approval. Guideline for Contract Management section 2.2.4 Contract Variations refers.) Complaints Procedure (Insert appropriate contractual clauses.) (Example – Provide details of complaints handling mechanism. Guideline for Contract Management section 2.2.8 Complaints Procedure refers.) Stage 3 – Contract Finalisation Completion/Renewal (Example – Detail arrangements for completion such as certificates, bank guarantees, retention monies, transition out, hand over, return of loan equipment and unused materials, and final performance reports.) Review and Evaluation (Example – Detail requirements for review and evaluation of the project against objectives, plans, prescribed processes, customer satisfaction and audit requirements. Documentation of lessons learnt and project completion report requirements.) Practical Completion/Hand over of Site (Delete if not applicable) (Example – Detail requirements and procedures of practical completion. Guideline for Contract Management section 2.3.3 Practical Completion and Hand Over of Site refers.) Note: The Territory becomes responsible for the site and liable to claims from the practical completion date. Defects Liability Period (Delete if not applicable) (Example – Detail length of period and Contractors obligations during this period. Guideline for Contract Management section 2.3.4 Defects Liability Period refers.) Stage 4 – Contract Audit Trail Audit (Insert audit processes) (Example – Detail the requirements for both internal and independent audits and elements of the contract to be audited, including (but not limited to) timeliness of service delivery, satisfaction of KPIs and customer satisfaction.) Note: For contracts which have alliance or partnering agreements, the audit function may be performed by the nominated representatives from the agency and the contractor, as specified in the contract and the CMP. Future Improvements (Insert recommendations for improvements to the service or goods, the contract and contract management process.) Appendices (Attach appendices) (Example – Depending upon the type and scope of the contract a variety of appendices may be required, including: • Service level agreements. • Site plans. • Site diaries. • Final works schedule. • Assets register updating. • User/client survey questionnaire.)