Category: Relationships and engagement

Subcategory: Stakeholder management

Contract management - ITCM

Managing and operating formal contracts, addressing supplier and client needs in product and service provision.

Levels:

Level 2:
Description: Assists in collecting contract performance data. Produces standard reports on contract performance under routine supervision.

Level 3:
Description: Acts as a routine contact point between the organisation and counterparties concerning contract management. Supports the collection of contract performance data. Creates standard reports on contract performance.

Level 4:
Description: Sources and collects contract performance data (such as pricing and supply chain costs), and monitors performance against key performance indicators. Monitors progress against business objectives specified in the business case. Proactively manages risk and reward mechanisms in the contract. Identifies and reports under-performance and develops opportunities for improvement. Monitors compliance with terms and conditions and takes appropriate steps to address non-compliance. Identifies where change is required and plans for variations. Ensures, in consultation with stakeholders, that change management protocols are implemented.

Level 5:
Description: Oversees and measures the fulfilment of contractual obligations. Uses key performance indicators to monitor and challenge performance and identify opportunities for continual improvement. Develops strategies to address under-performance and compliance failures, including the application of contract terms. Identifies where changes are required, evaluates the impact, and advises stakeholders about the implications and consequences. Negotiates variations and seeks appropriate authorisation. Actively supports and engages with experts and stakeholders to ensure continual improvements are identified through review and benchmarking processes. Develops and implements change management protocols.

Level 6:
Description: Negotiates and resolves contractual issues, including failure to meet contractual obligations. Promotes change control processes and leads variation negotiations when necessary. Champions continual improvement programmes, jointly developing strategies and incentives to enhance performance. Undertakes comprehensive financial evaluations. Ensures due diligence and legal vetting underpin all procurement processes, affirming risk assessment and compliance in contractual engagements. Ensures lessons learned from reviews are documented and promoted to all stakeholders. Leads the advancement and application of effective contract management practices within a specific business domain or category.

Level 7:
Description: Leads the strategic direction and governance of contract management processes across the organisation. Advises executive leadership on contract management risks and strategies. Implements contract management strategies aligned with organisational goals and market dynamics, including oversight of significant contracts and associated legal risks. Acts as the escalation point for major disputes. Promotes operational excellence in contract management, driving supply chain contracting improvements and innovation. Establishes strategic partnerships, aligning organisational and supplier goals. Represents the organisation in key negotiations, ensuring strategic, compliant outcomes.