In large procurement contracts it is good practice after the contract is completed to conduct a contract close-out review. This should be done by the contract management team. The review should consider the following:
- The timeliness of contract performance.
- Cost and quality performance.
- Risks analysis.
- Organizational and operational effectiveness.
- Appropriateness of the procedures.
- Suppliers‘ performance.
After the review a report should be prepared and distributed as necessary. The report shall provide good lessons for management of future contracts. Where there is need for action resulting from the report the management of the procuring entity shall decide. Where the team has performed well it should be commended and where it has not done very well it shall note for future improvement.
The file should contain:
- Signed original procurement contracts.
- Any signed modifications of the contract.
- Contract correspondence between the parties.
- Information of the performance.
- Management progress reports i.e. on budget, schedule and scope.
- Minutes of meetings of the project teams.
- Payments records and close up documents.
- Copy of performance security where required.
- Any other relevant information.
Responsibilities of the contract administrator
1. Monitoring the performance of the contractor ensuring all delivery or performance obligations are met.
2. Ensuring that contractor submits all required documentation as specified in the bidding documents, the contract and as required by law.
3. Ensuring there is adequate cost, quality and time control.
4. Discharge of performance guarantee where required. (Performance security)
5. Ensuring the procuring entity meets all its payments and other obligations on time and in accordance with the contract.
6. Ensuring the contract is complete prior to crossing the contract file including all handover procedures, transfers of file if need be and the final retention payment has been made.
7. Managing any hand-over or acceptance procedure
8. Making recommendations for contract termination were appropriate, obtaining all required approvals and managing the termination process.
9. Ensuring that all contract administration records are complete, up to date, filed and archived as required.
Reports
In large procurement contracts, the contract management plans should provide for review meetings. Review meetings are held periodically as found necessary for the purpose of face communications of contract performance and discussing the way forward and preparing status reports.
- Executive summary.
- Report on performance of activities and budget.
- Other issues relevant to the contract such as, environmental and general observation rating.
It is important for the contract managers to report to the procuring entities and with the administrator the outcome of such contract review meetings. In procurement contracts, it is good practice after the contract is completed to conduct a contract close-out review this should be done by the contract management team.
The review should consider:
- Timeliness of contract performance.
- Cost and quality performance.
- Risk analysis.
- Organizational and operational effectiveness.
- Appropriateness of the procedure.
- Supplier‘s performance.
After review a report should be prepared and distributed as necessary, the report shall provide good lessons for management of future contracts, where there is need for action, resulting from the report, the management of the procuring entity shall decide. Where the team has performed well it should be commended /appreciated. Where it has not done very well it shall note for future improvement.
