4/28/20151 PRESENTED BY NAKABAGO JOHN CONTRACT MANAGEMENT AND ADMINISTRATION IPPU PRESENTATION JOHN NAKABAGO

4/28/2015 PRESENTED BY NAKABAGO JOHN What is Contract administration? The process of managing the relationship between two parties, a buyer and seller with the aim of attaining the procurement objectives. It involves managing of the cost details, process, quality and time lines from the beginning to the end of the contract delivery.

4/28/2015 PRESENTED BY NAKABAGO JOHN Aim of contract management To obtain the goods and services as agreed in the contract Achieve value for money Ensure that the buyer performs according to terms of the contract. Building a good working relationship between customer and provider.

4/28/2015 PRESENTED BY NAKABAGO JOHN What does contract administration entail? Clarification of the roles and responsibilities of the various stake holders Ensuring mutual understanding of the rights, obligation and responsibilities of both the contractor and the buyer. Addressing the risks that may arise, Handling any appropriate changes where necessary (variations)

4/28/2015 PRESENTED BY NAKABAGO JOHN Supervising or monitoring the contract against key performance indicators (e.g. procedures, cost control, quality and timeliness ) Measuring and authorizing works Delivery inspection Paying according to agreed terms and avoiding overpayment. Compiling and disseminating of reports on performance

Variations Variations can be in terms of scope and/specifications Variations can be budget neutral or lead to a change in contract price In making variations we have to follow the relevant procedure. 4/28/2015 PRESENTED BY NAKABAGO JOHN

4/28/2015 PRESENTED BY NAKABAGO JOHN Benefits of effective contract administration Improved quality of service,works and goods delivered Improved customer focus. Timely delivery Achieving value for money Cost control and savings. Reduced crisis management Avoiding disputes

4/28/2015 PRESENTED BY NAKABAGO JOHN Evaluation of the specifications against contract performance and identification of changes that would benefit future contracts

4/28/2015 PRESENTED BY NAKABAGO JOHN Role of the contract manager Study closely provisions of the contract and be able to understand and interpret it, namely; - –Payment terms (i.e. advance, stages ) –Full particulars of the contractorawyers.

4/28/2015 PRESENTED BY NAKABAGO JOHN –The rights and obligations/liabilities of the parties in the event that something –Dispute resolution procedure. –Who can terminate the contract and in which circumstances. –Contract duration, and options for extension –contract price schedule.

4/28/2015 PRESENTED BY NAKABAGO JOHN Other roles To develop a contract management plan Plan, organize and attend site meetings Ensure supplier or contractor is paid promptly Approve or process for approval the appropriate variations Arrange for dispute resolution

4/28/2015 PRESENTED BY NAKABAGO JOHN Where there is a supervising engineer, the contract manager to ensure that they perform their duties without compromise. Liaise with the various stake holders and ensure that their expectations are managed Prepare performance reports.

4/28/2015 PRESENTED BY NAKABAGO JOHN Developing Contract management plan –Define who is involved in managing the contract; specify their responsibilities

4/28/2015 PRESENTED BY NAKABAGO JOHN The contract management plan should define; - –What reports are required –What content should include in each report –The format of presentation of the report –Who is responsible for producing the report –The frequency of reporting –To whom the reports should be distributed

Critical success Factors Adquate preparation. o Developing proper specifications that meet the needs of the organization. o Effective evaluation procedures and selection will ensure that the contract is awarded to the right provider.

The right contract. The contract is the foundation for the relationship. It should be clear on: –Identification and allocation of risk, –specifications –procedures for dispute resolution. 4/28/2015 PRESENTED BY NAKABAGO JOHN

Good corporate governance Effective monitoring o The performance under the contract must be monitored to ensure that the customer continues to get value for money. 4/28/2015 PRESENTED BY NAKABAGO JOHN

Relationship management. o Mutual trust and understanding, openness, and proper communications are as important to the fulfillment of the formal contract terms and conditions. People with the right skills o There must be people with the right interpersonal and management skills A contract manager (or contract management team) should be designated early on in the procurement process.

Flexibility. o Management of contracts usually requires some flexibility on both sides and a willingness to adapt the terms of the contract to possible changes. o Problems are bound to arise that could not be foreseen when the contract was awarded.

Change management. o Contracts should be capable of change (to terms, requirements and scope)

4/28/2015 PRESENTED BY NAKABAGO JOHN Common problems in contract administration Limited time for contract administration. Contracting officials often allocate less time Unclear roles and responsibilities. Lack of a well defined relationship between the contracting organization and the contractor

4/28/2015 PRESENTED BY NAKABAGO JOHN Unclear statements of work or specifications. Poor monitoring. Delayed payments.

END GOD BLESS YOU 4/28/2015 PRESENTED BY NAKABAGO JOHN