Manage associated risks

Contract management (lack of) - associated risks

Issues

Risks

Solutions

Contract not monitored

· Standards fall and supplies/services are not as required under the contract

· Opportunities for possible improvements are not identified or investigated and improved value for money is not achieved

· For service contracts ensure a Service Level Agreement (SLA) is developed, agreed and signed by all parties and use this to measure performance of the contractor

· For all contracts, seek feedback from end users and take appropriate action, should problems arise

· Hold regular meetings with the contractor and either ask several end user representatives to attend or seek their views beforehand

· Encourage suggestions from all parties on how the contract could be improved (to the benefit of both sides)

Minor problems are not dealt with

· Minor problems develop into major problems

· Standards fall and supplies/services are not as required under the contract

· The contractor believes that you are happy to receive the lower quality of service, and it may be difficult to raise the standards again

· Staff unhappy with the contract do not use it but purchase the product from a non-contracted supplier

· Seek regular feedback from both the end users and the contractor

· Review complaints and perceived problems, look for patterns and common causes, seek to find solutions

· Seek feedback from the contractor

Relationship becomes too ‘cosy’

· The contractor and end users become complacent and opportunities to gain improved value for money are missed

· The contractor believes that you are happy to receive the lower quality of service and it may be difficult to raise the standards again

· While partnership relationships are encouraged these should be market tested by tendering the requirement on a regular basis (at least every 4 years)