Following the awarding of a contract, it is important to consider how you are going to manage the contract for its life to ensure the best possible outcomes for UQ and the supplier.

In this stage you will:

  • implement a contract management plan to be followed by the contract manager
  • manage the contract by monitoring the supplier's performance against the agreed terms, including ensuring payment is made
  • review the contract throughout its life
  • close or renew the contract when it comes to an end
  • conduct a disposal process if required.

Contract management plan

Depending on the size and complexity of the new contract, you'll need to consider a variety of issues and actions.

For low-expenditure and easy-to-buy goods and services, you don't usually require a formal contract management plan.

For significant procurements, a contract management plan (DOC, 48KB):

  • assists in managing the risks of the procurement
  • provides an audit trail of documentation to support and justify important contract management decisions made during the life of the contract.

This can be especially useful if you need to make decisions about a supplier who is failing to meet the expected standard of performance.

There is no standard format for a contract management plan, and you should adapt the format to suit the particular purchase and to reflect your business unit’s priorities. These headings may help as a starting point:

  • Background: a brief summary of the procurement process that led to the contract
  • Details of the contracting parties: this should also include contact information for both UQ and the supplier, and details of who is authorised to issue and respond to notices and initiate contract variations
  • Details of major stakeholders: include the stakeholders’ reasons for interest in this contract. Document the nature of any internal UQ relationships
  • Contract details summary: a summary of information contained in the contract
  • Contract management strategy: include the desired objective, methods or procedures to be followed, and references to and location of any useful source documents.

Monitor the supplier’s performance

Regularly reviewing your supplier's performance throughout the life of the contract will help avoid long-term issues and negative outcomes for UQ.

Using a contract performance report (DOC, 54KB) will allow you to evaluate the suppliers performance over the life of the contract.

Contract managers should consider conducting these tasks:

  • regularly check the supplier’s progress to ensure that contractual obligations are being met
  • conduct regular random inspections of the supplied goods or services during the contract period to ensure that they meet specification and are of a suitable standard
  • check that all conditions and clauses in the contract are acted upon; the contract manager should be aware of any breaches of contract and be prepared to take action (after seeking legal advice) if any non-conformance with the contract occurs
  • advise the supplier in writing if dissatisfied with any aspect of performance under the contract
  • act immediately if a problem occurs and involve senior representatives of both the procurer and supplier to solve any identified problems as soon as appropriate
  • develop effective mechanisms for obtaining feedback from stakeholders about the procurement
  • keep adequate written records of all dealings with the supplier and of the administration of the contract (for example, file notes of inspections, telephone conversations, records of meetings and documented invoice processing)
  • perform regular inspections of work to ensure compliance with any applicable legislation, contract conditions, quality provisions or workplace health and safety. Depending on the nature of the procurement, its complexity and associated risks, this could be on a daily, weekly or monthly basis.

Review the contract

Towards the end of the life of a contract, the contract manager should perform a contract review. This will help decide either:

  • whether UQ will need to enter into a new procurement process (if it is an ongoing need)
  • what needs to occur as part of the close-out of the contract.

It also gives the supplier an opportunity to give and receive feedback.

A contract review should cover:

  • if the contract provided UQ with the outcomes originally sought
  • how the success of the contract was assessed
  • any unforeseen issues and how they arose
  • if any additional benefits were achieved
  • if the supplier viewed UQ as a good customer and whether the supplier would like to see any changes for future contracts with UQ
  • what the next steps are after expiry of the contract.

Disposing of the asset

Appropriately disposing of any surplus plant and equipment as per your procurement plan is a key part of successfully completing any procurement process.

Read about asset transfers, trade-ins and disposals for more information on the best practice and recommended processes.

Surplus plant and equipment should be transferred or disposed of as soon as reasonably possible to ensure the cost-effectiveness of the original purchase is maintained.

Before organising disposal, consider whether the asset:

  • has another use within UQ
  • could be sold via public auction
  • has any retained value as a trade-in or as a recycling target
  • has any health and safety or security issues associated with its disposal
  • is subject to any local council restrictions or requirements related to demolishing or dumping
  • is a building with potentially toxic and hazardous materials that increase safety risks when being demolished.

Category management

UQ is moving to a 'category management' model where procurement resources are organised to provide focus on specific areas of spend. This enables category managers to focus their time and conduct in-depth market analysis to leverage their procurement decisions on behalf of the whole organisation. The results can be significantly greater than traditional transactional-based purchasing methods.

Find a category manager

There are a number of categories that are managed by specific areas of UQ: