CCM have the knowledge and experience to enable effecient administration of the Contract.
Contract management is the process that enables both parties to a contract to meet their obligations in order to deliver the objectives required from the Contract. It also involves building a good working relationship between Client’s and Contractor’s. It continues throughout the life of a contract and involves managing proactively to anticipate future needs as well as reacting to situations that arise.
The central aim of contract management is to obtain the services as agreed in the contract and achieve value for money. This means optimising the efficiency, effectiveness and economy of the service or relationship described by the contract, balancing costs against risks and actively managing the customer–provider relationship. Contract management may also involve aiming for continuous improvement in performance over the life of the contract.
Contract management activities can be broadly grouped into three areas:
- Service delivery management ensures that the service is being delivered as agreed, to the required level of performance and quality.
- Relationship management keeps the relationship between the two parties open and constructive, aiming to resolve or ease tensions and identify problems early.
- Contract administration handles the formal governance of the contract and changes to the contract documentation.
All three areas must be managed successfully if the arrangement is to be a success.
In addition, good preparation and the right contract are essential foundations for good contract management. The arrangement must also be flexible enough to accommodate change.