Manage a contract

The Queensland Procurement Policy 2023 (QPP 2023) stipulates policy requirements related to contract management, to be applied by all government agencies subject to the QPP 2023.

Effective planning for managing a contract is an important part of the procurement sourcing process. Consider contract management issues, such as how supplier performance will be measured, early on.

There are 3 major phases of contract management:

• Phase 1: Contract set-up
  Initiate and plan the contract management process
• Phase 2: Contract management
  Administer and manage contracts
• Phase 3: Contract close-out
  Close and transition contracts

Benefits of good contract management

We need to effectively manage contracts with suppliers to ensure the Queensland Government maximises benefits from procurement. These benefits include:

Value for money

• Enables the best available outcome for money spent as identified during the procurement or contract management process.
• Enables benefits through ongoing performance reviews, service improvements, supply chain improvements, and innovation.

Effective risk management

• Reduces contractual risks through robust contract management practices.
• Maximises outcomes to end users by managing supplier performance, maintaining quality, improving productivity and identifying opportunities for improvement and innovation.
• Improving transparency and reducing fraud and corruption risks, driving greater confidence and trust in government procurement.

Manage value and risk

Use the value/risk matrix (XLSX, 114KB) to classify a contract based on value and risk. This is a key step in setting up a contract (phase 1).

Extending and renewing contracts

Before a contract expires, you need to determine which approach will obtain the best value for money: extending and renewing the contract or re-approaching the market under a new procurement process.

Resources

• Contract management framework
  (describes the required activities and responsibilities associated with the 3 phases of contract management)

Phase 1: Contract set-up

• Value/risk matrix (XLSX, 114KB)
  (classify a contract—as either routine, focused or strategic—based on value and risk)
• VRM user guide (PDF, 439B)
  (how to use the value/risk matrix for contract management)
• Contract management checklist (XLS, 123KB)
  (key information relevant to managing routine contracts)
• Contract management plan template (DOCX, 82KB)
  (key activities and responsibilities for managing a contract)
• Contract kick-off meeting template (DOCX, 60KB)
  (a guide for the contract kick-off meeting)

Phase 2: Contract management

• Contract KPI development template (DOCX, 55KB)
  (explains KPIs including minimum performance requirements, frequency of and responsibility for measurement)
• Contract performance review meeting template (DOCX, 57KB)
  (supports the contract manager to conduct and document a contract performance review meeting)
• Risk register template (XLSX, 768KB)
  (record and maintain a single repository for contract risks)
• Checklist for contract extensions/renewals (DOCX, 236KB)
  (record the value for money assessment of extending or renewing a routine contract)
• Contract review report (DOCX, 371KB)
  (record the analysis and recommendation to extend or renew a contract, or transition to other suppliers)
• Letter of variation (DOCX, 301KB)
  (a letter that formally documents variation(s) to a contract)
• Letter to extend or renew a contract (DOCX, 305KB)
  (a letter that formally documents an extension or contract renewal)

Phase 3: Contract close-out

• Lessons learned template (DOCX, 55KB)
  (document lessons learned throughout the contract lifecycle)
• Close-out check list template (DOCX, 55KB)
  (confirm all close-out activities have been performed)

More information

• Create a purchase order
• Learn more about value for money
• Additional procurement resources
• Use VendorPanel for quotes

Contact

For general procurement queries, email betterprocurement@epw.qld.gov.au.

For questions about going to market, contact your agency procurement lead or see your intranet.