Author: Liz Busch

Planning for a procurement should consider the entire procurement lifecycle, including contract management and close-out.  However, it’s difficult to anticipate everything that may occur after the contract is signed – how does one plan for the unpredictable?

The answer is to develop a contract management plan that includes strategies for:

  1. Establishing a positive relationship between the owner (or buyer) and the contractor;
  2. Identifying problems early; and
  3. Adapting for unexpected.

A. Positive Relationships

Nothing will sour a contractual relationship faster than misunderstandings about deliverables.  If they do not meet the owner’s expectations, the parties may become defensive or lay blame.  For example, the owner may feel that the contractor is anticipating change orders that will increase their profits, and the contractor may feel that the owner inadequately described their expectations.  

To avoid this situation, owners should consider the following strategies:

B. Identify Problems Early

Contract management plans need to include processes to identify issues early so that they can more easily be resolved.  Consider the following for your contract management plan:

C. Adapt to the Unexpected

Even with the best contract management plans, there’s always a possibility of an unexpected event impacting what the owner needs or what the contractor can deliver.  Contract management plans must be adaptable to such events, while still ensuring that both parties are meeting their contractual responsibilities.  The following strategies may help for these situations:

Following this advice does not guarantee a problem-free contract but can be helpful to keep owners and contractors focused on what they both want – a successful contract.

We invite you to checkout our training and service offerings pertaining to public sector procurement.

Author: Liz Busch

Resources

Strategies for Designing a Contract Management Plan

Author: Liz Busch Planning for a procurement should consider the entire procurement lifecycle, including contract management and close-out.  However, it’s difficult to anticipate everything that may occur after the contract is signed – how does one plan for the unpredictable? The answer is to develop a contract management plan that includes strategies for: Establishing a […]

Finding the 2nd Right Answer: The Planning Phase of Procurement

Author: Larry Berglund The anchoring effect in decisions can be a self-limiting influence. Our awareness of past practices has a large affect on our future decisions. Our options moving forward are based on what we know and any deviations invite a sense of risk. What we did last month to run a competitive process or […]

The Purpose of Procurement: How ESG is Changing our Roles

Author: Larry Berglund Major global events have been impacting supply chains for years: the shift from a fossil fuel energy supply to renewables; the digitalization of information; the electrification of transportation; the need for decarbonization to reduce emissions; eliminating plastics and waste; the pandemic; the circular economy; global warming; and environmental, social, and governance (ESG) […]

Top 10 Foundational Steps To Building A Strong Procurement Strategy

Author: Liz Busch Do you feel that your organization may not be strategically procuring the goods, services and construction it needs?  You’re not alone! Some organizations manage procurement reactively, where each acquisition is a stand-alone procurement once a need is identified which can ultimately result in multiple separate procurements for similar commodities.  Overall, this approach […]