Contract management procedure
Intent and objectives
To establish sound and consistent management practices with respect to University contracts.
All contracts and other documents which create legally binding obligations on the University. The Procedure covers both supply and procurement, and will apply to a contract until contractual obligations have concluded.
Non-binding memoranda of understanding
Procedure steps and actions
1. A person shall be nominated as a Contract Manager for a particular contract by that person’s supervisor.
2. If different Contract Managers are to be appointed for a number of distinct phases or stages of the contract, the relevant stages or phases and applicable Contract Manager must be clearly identified in the sign-off Checklist (refer item 8). The person appointed as the Contract Manager for the first phase or stage shall be responsible for the pre-contractual actions required by this procedure.
3. The Contract Manager shall conduct a credit check and due diligence of the other party(ies) to the contract to assess that party’s(ies’) suitability as a contracting party, except where the other party is generally regarded as being reputable and of sound financial standing. A due diligence should include details of the other party’s insurances.
4. The Contract Manager shall acquaint himself/herself with the contractual obligations of all parties to the contract.
5. Where necessary, the Contract Manager should obtain financial advice from Financial Services Group.
6. If the Contract Manager considers that the contract would expose the University to risk (other than insignificant risk), the matter should be referred to Legal Services Group for advice. In any event, if a contract is required to be drafted by the University, the Contract Manager should engage Legal Services Group to draft or otherwise provide an appropriate document.
7. In the case of a complex contract, the Contract Manager should prepare a risk management plan in accordance with the “Guidelines for Assessing Business Risk” prepared by Internal Audit and Risk Management Group.
8. The Contract Manager shall provide to the University officer having delegated authority to sign the contract (or to the University Secretary where the common seal is to be affixed) a written sign-off certifying that the contract is in order for signing on behalf of the University. The sign-off should address the matters contained in the attached Checklist.
9. After signing, the details of the contract should be entered into TRIM, together with a scanned electronic copy of the signed contract and a copy of the Contract Manager’s sign-off.
10. The Contract Manager is responsible for filing the University’s copy of the executed contract in accordance with the University’s Records and Document Management Policy.
1. The Contract Manager should keep written records of all dealings with the other party(ies) and of administration of the contract.
2. The Contract Manager should diarise important dates with respect to the contract (e.g. an option to renew etc.) through the use of TRIM or Research Master (for research projects).
3. The Contract Manager shall ensure that any amendments or variations to the contract are fully documented and recorded.
4. The Contract Manager shall ensure that invoices are rendered in accordance with the provisions of the contract and entered into the University’s SAP system (where the contract is one of supply by the University).
5. The Contract Manager shall ensure that payments are made within the relevant timeframes (where the contract is one for procurement by the University).
6. The Contract Manager shall report regularly to the University project sponsor or owner (if a person other than the Contract Manager).
7. The Contract Manager shall arrange for another person to be appointed (whether on a temporary basis or otherwise) in the event of absence from the University.
1. The Contract Manager should take appropriate action and contact Legal Services Group if there is any default on the part of the University or on the part of the other party(ies) to the contract.
2. In addition to any action required to be taken under the contract with respect to review or rollover, the Contract Manager should prior to the end of the contract assess whether the contract is to be extended or transitioned out.
3. Where the contract is not to continue, the Contract Manager should ensure that there is an orderly transition from the contract.
4. Following expiry or termination of a contract, the Contract Manager should ensure that the University’s records are updated accordingly.
Contract management checklist
Checklist items to be covered:
- Provide a brief summary of the subject matter of the contract.
- Quotations and Tender Policy followed? Yes / No
- Legal advice obtained? Yes / No If not, then why not?
- If legal advice obtained, how were the risks addressed?
- Financial advice obtained? Yes / No If not, then why not?
- If financial advice was obtained, what advice was provided and how has it been addressed?
- Is this contract one which requires a risk management plan? Yes / No
- If a risk management plan is required, what are the details of the plan?
- Provide details of the due diligence and credit check conducted on the other party, or explain why these were not necessary.
- Provide insurance details of the other party, or explain why insurance was not necessary.
- Provide details of the Contract Manager and his/her supervisor (where there will be different Contract Managers for distinct phases or stages of the Contract, specify each phase/stage and the Contract Manager applicable to that phase/stage).
- Provide certification that the documents are considered by the Contract Manager to be in order for signing.