Contracts Management Governance Mona El-Chami, Senior Financial Management Specialist World Bank November 2013 Tripoli, Libya

Contract Management Better contract management could potentially generate savings through reduced contract expenditure Better contract management can improve quality of services, avoidance of service failure, and better management of risk

NAO, Good Practice Contract Management, 2008

Planning & Governance Planned transition from the tendering/contract award phase to the contract management phase, and a handover to contract manager where contract ownership is clear. Well defined processes and a clear contract management plan, with a focus on outputs and a ‘whole life’ approach to performance. Contract management processes are aligned with, among others, wider organizational governance processes, operational boards, and risk structures. Contract management issues and performance are reported through the governance structure with senior level engagement. Regular assessment and evaluation takes place to ensure that the cost of contract management activities is justified and proportionate to the benefits obtained. Knowledge management is embedded, capturing key data and lessons from contract management process and experience both within the organization and more widely. Professional contract management guidance is developed, or identified from external sources, and made available to contract managers.

Oversight Is contract management fulfilling its purpose, ie, that it is being used to ensure that goods are delivered, services rendered and work done, and that the price paid was in accordance with contract terms and conditions?

Ensure that goods were delivered, services rendered and work done in accordance with contract terms and conditions. Work does not begin until the contract documents are duly signed. The goods and services provided are in compliance with contract conditions. Invoices submitted by the contractor include the required certifications from the competent authorities. The goods and services for which the contractor is invoicing have been inspected and accepted. The deliverables have been received. Appropriate supporting documents are provided with respect to fees paid for temporary services..

Ensure that the price paid is in accordance with contract terms and conditions. Invoices submitted by the contractor is subject to a compliance verification by the appropriate authorities. The price paid is in accordance with the basis of payment in the contract. Verification is carried out by the responsible parties. Contract management framework in place was fulfilling its purpose, ie, that it was being used to ensure that goods were delivered, services rendered and work done, and that the price paid was in accordance with the terms and conditions of the contracts.

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