CONTRACT
MANAGEMENT
Professional Standards Version 2.0
July 2019
2
How do I use this document?
The Standards will help you reflect on your (or your team’s) capabilities and development needs, and can be
used as a tool for career progression and to inform development conversations. They can be used to identify
development needs or technical areas of interest, which you can address by building your capabilities through
targeted learning and development interventions.
The Standards have been designed to be read alongside the Success Profiles - Civil Service Behaviours, Civil
Service Leadership Statement and the Civil Service Code. They are not a detailed handbook of all contract
management activities. The Cross Government Contract Management Best Practice Guide and its supporting
templates should be referred to for this purpose.
If the content of this document applies to you directly, you are encouraged sign up to the Contract Management
training, which explains how to embed these principles into your day-to-day responsibilities. The training is
based on these Standards and is available at the defined three levels; Foundation, Practitioner and Expert.
Please contact your organisation or the Contract Management team for more information on how to get involved.
Development of the Standards
Content is under continuous development and therefore new versions of the Standards may be uploaded
periodically. Version 2 has been updated in line with the new Contract Management training and assessment
materials and includes more references to the role of the Senior Business Owner, refreshed People Profiles and
information on example career pathways.
For further information or to provide feedback please contact the Contract Management team via contract-
management@cabinetoffice.gov.uk.
FOREWORD
1
Successful contract management matters in
real life: it leads to a child attending a good
school, equipped with essential facilities
required for them to succeed; it means an
elderly person getting the medicine, support
and assistance needed to live a long and
happy life; it enables well-maintained
motorways to get us safely from A to B.
Every year central government spends £49
billion through contracts on vital goods and
public services. It is essential that we have
the capability within the public sector to
understand the policy goal or operational
objective; procure services if necessary;
then manage these contracts effectively.
The ability to successfully procure these
services is a critical skill. However, if we only
focus on this aspect, we can risk
underestimating the impact of other
important elements of contract management
such as managing contract delivery, change
control, stakeholder management and
ultimately the close-down of one contract
and the design of the next. These elements
can make the difference between the
success and failure of vital services and
major infrastructure projects.
We have recognised that the majority of
contract management activity sits outside of
the commercial function. Individuals
responsible for these activities are often
anchored in project management,
operations and other professions. The
Contract Management Professional
Standards have been developed to ensure
consistency across the landscape and set
clear capability benchmarks for individuals
involved.
Whether you identify as a contract manager
or carry out contract management activities
as part of a wider role, we want to help you
develop the full range of skills, acumen and
relationships required to manage contracts
effectively. The standards can help identify
development needs and learning
opportunities. They also form the basis for
the assessment for individuals aiming for
accreditation.
When we spend money well, we can
achieve great things. Successful services
can not only change lives, but also impact
on the prosperity and security of the UK. As
civil and public servants we all have a duty
to deliver the best results for the taxpayer.
We are entrusted with enormous amounts of
public money and it is our responsibility to
spend it well, for the benefit of our citizens.
John Manzoni
Chief Executive of the Civil Service and
Cabinet Office Permanent Secretary
What are the Contract
Management Professional
Standards?
The Standards set out the capabilities
expected of government professionals who
are involved in the management of contracts.
Who are they for?
These Standards are for individuals who
identify as contract managers as well as
those within an operational delivery, policy or
other roles who:
• Contribute to or make decisions that
affect the obligations of a supplier or
have other commercial impacts;
• Carry out contract management
activities as part of their role; and/or
• Take part in supplier interactions
or negotiations.
In using third party suppliers, government
remains accountable for service delivery,
delivering benefits and managing the
associated risks. Successful management of
these contracts and suppliers depends on
these individuals forming cross-functional
relationships with colleagues from multiple
disciplines to develop a balanced view of
risks and opportunities, as well as obtain
professional expertise on specific issues.
The diagram below illustrates this cross
functional way of working. While the areas
shown are some of the most frequently
observed in terms of input and engagement,
this is one picture among many; the extent to
which they are required will vary according
to the nature of the contract and the supplier
relationship, as will the involvement of other
groups including IT, communications and
business users.
The Standards include case studies which
illustrate the cross functional nature of the
work carried out during a contract’s
lifecycle, as well as high level contract
management activities.
Operational Delivery
3
Legal/Finance Policy
Commercial
Project Delivery
HR
CONTRACT
MANAGEMENT
Supplier relationships and contract delivery
also benefit from these relationships being
established up front in the commercial
lifecycle. Contract management activities
should not wait for a contract award to start.
Individuals responsible for performing these
activities should ideally be involved from the
outset to: gather and share lessons learned;
confirm the contract is fit for purpose and
appropriate resources are in place; inform the
procurement process; and ensure a successful
transition to service delivery (below):
The Standards have therefore been developed
to support individuals in being more effective
in their roles throughout this process, through
comprehensively articulating the acumen,
relationships and technical skills required
when carrying out contract management
related activities.
By providing a level of clarity and consistency
around roles and responsibilities, the
Standards assist with career progression
conversations and are designed to stimulate
meaningful conversations around learning and
development. They can also provide insight
for individuals who would benefit from further
understanding of this area, such as strategy,
policy and commissioning professionals.
For example day-to-day roles at each tier
please see the People Profiles section.
For more information on Senior
Responsible Owners (SROs) see Annex
B.
Stakeholder, supplier and
market engagement
Procurement Contract and supplier management
Time spend on value-add activity
4
Historic Contract Manager
involvement
Historically, the focus when
managing contracts started
here. However, a number of
issues could have already
arisen or been agreed prior
to this point.
SRO and Contract
Manager involvement
SROs and Contract
Managers should be
involved from the beginning
of the contract management
lifecycle to maximise value
and impact.
How were they developed?
The Standards incorporate best practice
from across government and relevant insight
from the private sector.
Taking a cross-government approach, the
Standards were developed with input from
commercial and non-commercial colleagues
across departments as well as professional
bodies, CIPS and IACCM. A number of
pre-existing sources also fed into the
development of the Standards, more
information can be found in Annex C.
How are they structured?
Given the breadth of individuals across
government involved in different stages of
contract management, there is a variation
in roles and activities within Civil Service
grades among the community. The Contract
Management Standards are therefore not
aligned to Civil Service grades, instead
setting out minimum requirements at three
levels, Foundation, Practitioner and Expert.
Due to the variety of contracts under
management across government, the level
and experience required will also be
affected by the size, scale, risk, complexity
and criticality of the contract/relationship.
The Standards can help departments
articulate the attributes and resource
quantity required according to the tiers to
support successful contract delivery.
Links between levels
In a typical large project, the SRO will rely on a
well-organised contract management team to
deliver the required services through the
contractor(s). This team will typically be managed
by an expert who will anticipate and act on a wide
range of strategic issues, delivery risks and senior
stakeholder concerns. They will be supported by
one or more practitioners who will focus on one
SRO: Ensures there is sufficient, accredited,
contract management resource and tests
contract management recommendations
Foundation: Uses understanding of contract
management principles to input into successful
delivery of organisational outcomes
Practitioner: Applies knowledge and skill to
deliver effectively on responsibilities to achieve
organisational outcomes
Expert: Takes a strategic view, drawing
on best practice to lead on achieving
organisational outcomes
Standards apply to these capability levels
Further detail on how the Standards relate to the NAO Commercial and contract management: insights and emerging best practice document and the Cross-Government Contract
Management Working Group Best Practice Guide, can be found in Annex A.
5
Foundation Practitioner Expert
or more contractors in the supply chain and/or
particular aspects of the service. Foundation level
staff may be directly supporting practitioners or
managing a small contract as part of a broader
role.
Senior Responsible Owner (SRO)
6
Commercial
Policy
HR
Project Delivery
CONTRACT
MANAGEMENT
Career Pathways and Contract
Management
Most Contract Managers will have their career anchor in a
particular profession, such as one in the diagram below.
Becoming accredited at the different contract management
levels can provide skills required for promotion and different
opportunities, whilst retaining your identity as part of that
profession.
Many of these professions have their own career paths and/or
people standards on gov.uk that can be referred to for more
information.
Example Career Pathway for a
Contract Manager in Operational Delivery
Example Career Pathway for a
Contract Manager in HR
Responsible for supporting the management of contracts
including; reporting on performance information, drafting and
filing contract documentation and recording lessons learned.
Relevant accreditation: Foundation
Responsible for the most significant and complex contracts,
taking a strategic approach to understand the organisational
objectives and providing leadership and expertise to their team.
Relevant accreditation: Expert
Responsible for ensuring medium-scale contracts deliver the
expected goods, services and outcomes including activities
such as; contract variations, risk management approach, leading
day to day interactions with suppliers and managing KPIs.
Relevant accreditation: Practitioner
Responsible for commissioning work to suppliers from a pre-
agreed framework, monitoring day to day performance.
Relevant accreditation: Foundation
Responsible for understanding cross-departmental and cross-
functional requirements, feeding into the procurement process
and having overall contract management responsibility across
the portfolio of contracts.
Relevant accreditation: Expert
Responsible for inputting to procurement activity, holding
regular supplier review meetings as well as monitoring spend
and performance across a range of contracts.
Relevant accreditation: Practitioner
Recruitment Account
Manager
(In a dept. or function)
Head of Recruitment
(In a dept. or function)
Head of Recruitment
(Pan-government)
Contract Analyst
(For a frontline service)
Contract Manager
(For a frontline service)
Senior Contract
Manager
(For a frontline service)
Operational Delivery
Legal/Finance
Contract Management is not currently a profession, though this may be explored in the future.
What do they include?
The Standards are structured into two
sections: Section A describes the business
acumen, relationships and leadership
capability required; and Section B
describes technical areas of expertise. The
interpretation of each capability area will
vary by each level, Foundation, Practitioner
and Expert.
Please refer to the Annex D: Definitions for
any terms with which you are not familiar.
A. Acumen, Relationships and Leadership
Section A describes the business acumen, relationship development and leadership
skills required of those managing contracts. Further detail on these can be found below:
B. Technical expertise
Section B contains six technical capability areas aligned to the contract management activities carried out by those in government.
The technical area(s) relevant to you will be dependent on your role and responsibilities. Further detail on these can be found below:
A1
BUSINESS ACUMEN
The business understanding and market
awareness required of those involved in
managing contracts. These include
applying a risk mind-set and the ability to
manage complexity when making
decisions.
A2
RELATIONSHIPS AND
LEADERSHIP CAPABILITY
The resilience, assertiveness and political insight
required during stakeholder interactions, while
maintaining the ability to build relationships. This also
includes taking steps to improve contract management
capability.
7
B1
DESIGN AND ONGOING
DEVELOPMENT
Supporting colleagues in the commercial function by
contributing to re-procurement and new sourcing
exercises, as well as using information sources and
ensuring contract governance set up.
B2
PROCUREMENT AND
MOBILISATION
Inputting into the procurement exercise, the development
and implementation of effective planning and, once
sourced, mobilising the contract.
B3a
MANAGING CONTRACT DELIVERY
B3b
EXIT AND TRANSITION
Appropriate use of performance management levers with the
ability to realise contractual benefits. Those carrying out
these activities need to be intuitive to arising risks and able to
deal with issues when they arise.
B4
CHANGE CONTROL
Understanding and being able to work to the contract
change process. This includes understanding the positive
and negative impact of contractual changes.
B5
STAKEHOLDER ENGAGEMENT
Identifying and managing relationships with a variety of
stakeholders. This includes the adherence to specific
processes contained within the contract.
RISK MANAGEMENT
Risk planning, ensuring compliance and monitoring
risks (including strategic and operational risks).
The activities contained within Section B are grouped by capability area; while some capability areas may appear to refer to a specific stage in the
contract management lifecycle, it is important to note that many of the activities contained within them can take place throughout the life of the
contract. More effort will be required in some areas of the lifecycle than others and there will be different expectations at Foundation, Practitioner and
Expert.
An indication of how both Sections A and B of the Standards can apply to the contract management lifecycle is shown in the diagram below:
8
B4 CHANGE CONTROL
B5 STAKEHOLDER ENGAGEMENT
B6 RISK MANAGEMENT
EXIT AND
TRANSITION
MANAGING
CONTRACT
DELIVERY
Contract management lifecycle activities
Contract management enabling activities
DESIGN AND
ONGOING
DEVELOPMENT
B1
PROCUREMENT
AND
MOBILISATION
B2
A2 RELATIONSHIPS AND LEADERSHIP CAPABILITY
A1 BUSINESS ACUMEN
Contract management behaviours
B3a B3b
10
My contract-related activities:
In my role I am required to have a knowledge of our contracts
to understand our suppliers’ contractual obligations. I liaise
directly with suppliers to answer queries, and work with our
contract management team to remind suppliers of their
obligations. This forms about 15% of my day-to-day role.
Top 3 activities:
1. Day-to-day engagement with suppliers and major
stakeholders
This requires me to answer contractual queries from suppliers
and engage with stakeholders to monitor performance.
2. Analysing performance, identifying trends and potential
risks to delivery
I capture and analyse data to assess performance. This allows
me to identify commonly occurring performance issues, which I
then work with our contract management team to proactively
manage.
3. Drafting contractual provisions to deliver policy changes
I work with our legal and contract management teams to draft
contractual provisions in order to deliver policy proposals.
How this fits into my team objectives:
My organisation contracts with law firms to provide legal services for
the public. Firms must receive a contract in order to provide legal aid
work in a certain area of law. Monitoring contractual performance, to
ensure providers are operating in accordance with their obligations, is
vital in ensuring service users receive quality legal services and to
delivering access to justice.
How the Standards have supported me:
I work in the policy profession, and did not see myself as a contract
manager. However, our services are delivered through suppliers on a
contractual basis. This means that contract management activities are an
important element of my day-to-day role. The foundation level standards
and training has helped me formalise these elements of my role and gain
a greater understanding of contract management principles which I can
apply to my day job.
Alex Gough
Service Development Manager
Legal Aid Agency
Foundation
“Monitoring
contractual
performance,
to ensure
providers are
operating in
accordance
with their
obligations, is
vital in ensuring
service users
receive quality
legal services”
11
My contract-related activities:
Within the Commercial Directorate of DHSC we have a system
named BravoSolution, which we use to map, procure and
manage our contracts. As I am Senior System Administrator
for this platform, I have been asked to become its Operational
Contract Manager – thereby ensuring that Bravo - the
company that provide the system, deliver it to our spec.
Top 3 activities:
1. Monitoring system response times, such as data return
speed.
As OCM I shall chair our monthly service review meeting with
the supplier, where I shall be responsible for ensuring that the
system reacts to user requests in good time. To do this, I will
need to be familiar with performance reports and be aware of
the response times that our supplier is contractually committed
to.
2. Monitoring the supplier’s delivery of system
enhancements.
System enhancements are the changes we request to the
platform which affect all users, whether public sector or
otherwise. Due to the breadth of their effect, the timescales for
implementation are much larger, which can negatively impact
upon internal staff and suppliers. Consequently, it will be my
job to record such requests, liaise with the health family to
prioritise them and work closely with Bravo to ensure that
these are being delivered to a satisfactory standard.
3. Preparing for contract exit and potential transition.
As our contract with Bravo is due to expire in June 2020, with a
potential one year extension, I am a member of the project
board overseeing the re-procurement and potential transition of
this service. As OCM it will be essential for me to confirm that
all planned actions and mitigating processes are employed, so
that minimal service disruption and user uncertainty occurs.
How this fits into my team objectives:
These activities enable me to ensure that the system that our
procurement and contract management staff use is responsive,
intuitive and flexible. By maintaining such high standards, we receive
a value for money platform that improves the efficiency of our teams.
Furthermore, my involvement in the re-procurement project board will
aid us in onboarding some of the best technology that is affordable
and widens our market audience.
How the Standards have supported me:
Coming from a legal background and having only joined the Commercial
team a year ago, this training has been crucial at providing me with an
overview which complements what I have already learned. It enables me
to get the most out of succinct, relevant and highly informative training,
whilst also allowing me to meet a diverse range of people from across the
Civil Service. I have built a number of networks so far. The training cohort
that I am part of is already exchanging best practice materials. The
workshops have been challenging but thoroughly enjoyable and have
really increased by ability to speak publicly and understand the broader
commercial picture across government.
Poppy Eldred
Commercial Systems Analyst
Department of Health and Social Care
Practitioner
“By maintaining
such high
standards, we
receive a value
for money
platform that
improves the
efficiency of our
teams”
12
My contract-related activities:
I am accountable for a portfolio of contracts which provide
back-to-work support to people who are unemployed. This
support is provided through national programmes, for example
the Work and Health Programme and services are typically
delivered through a matrix of regional contracts with the private
sector. I lead a team of approximately 50 performance
managers based all across the country who drive performance
and manage the delivery of the contracts.
Top 3 activities:
1. Addressing underperformance with contractors
I act as an escalation point where contractor performance is
unsatisfactory and regional performance management action
has not yet led to the required improvement. I hold senior
performance reviews with the contractor, typically at CEO or
COO level, to increase the pressure on the organisation to
meet the department’s requirements.
2. Setting contract management strategy and building
capability across the division
I am responsible for setting the overall strategy for contract
management across the portfolio, making prioritisation
decisions, and ensuring the team has the skills and capability
to manage the contracts. This includes considering how we
might roll out contract management training across our teams!
3. Influencing future commissioning
An important part of my role is ensuring lessons learned
through contract management are taken into account in
designing, commissioning, and procuring future programmes.
I represent Contract Management on Programme and
Commercial Boards for programmes in development and work
with colleagues across Strategy, Policy and Commercial to
influence design and procurement.
How this fits into my team objectives:
As a team we are responsible for the effective delivery of the
contracted employment support; support that is designed to help
people move into lasting work, often transforming their and their
families’ lives. This means holding contractors to account, so they
provide the best service and outcomes for citizens, and we spend the
right money to deliver the best value for money for the taxpayer. This
is an essential part of the department meeting policy intent and we are
the people that ensure our contractors deliver on these objectives.
How the Standards have supported me:
The standards have supported me to professionalise our approach to
contract and performance management, learning from the best practice
across government. As a team already devoted to contract management
this has been an evolution rather than a revolution, and the standards have
help me hone our approaches. We have recently undertaken a review of
our Performance Management Intervention Regime which sets out the
principles our people adhere to in addressing underperformance, and the
standards were a valuable input into that review.
Nick Butler
Assistant Employment Account Director
Contracted Health and Employment Services Directorate
Department for Work and Pensions
Expert
“This is an
essential part
of the
department
meeting policy
intent and we
are the people
that ensure our
contractors
deliver on
these
objectives”
13
My contract-related activities:
As Director of Investment I am the SRO for a number of high-
profile projects and teams. These include:
• The Government to Government (G2G) with Peru to deliver
the PanAmerican Games.
• The Global Investment Summit, which brings together top
executives from some of the world’s largest companies in
order to showcase what the UK has to offer and to promote
investment.
• The Investment Services Team, a contract with EY/OCO to
support foreign direct investment into the UK.
Top 3 activities:
1. Ensuring each of these contracts are properly managed
and fully support policy objectives
This includes reviewing the organisation of contract
management resources, ensuring management information
provides necessary insight for myself and senior stakeholders
and supporting the contract management team when strategic
and relationship issues arise within the contractors and/or
clients.
2. Client engagement
This includes meeting with top executives and companies to
discuss their operations in relation to the UK. We discuss what
improvements can be made and how can we help. I regularly
consider whether we have the appropriate contract and
organisational arrangements in place to meet the needs of UK
companies.
3. Ensuring connectivity across the network
I’m responsible for ensuring teamwork across DIT and IST, DIT
and the Peruvian Government, DIT and Whitehall (particularly
No.10 and the Foreign and Commonwealth Office). I also
ensure cohesion across the UK network (LEPS, DAs, etc.), and
across the global network (overseas posts).
How this fits into my team objectives:
The end goal is to promote the UK for foreign investment and to
ensure the UK remains competitive. This requires a lot of contact with
top investors to ensure the environment remains enticing for them and
ensuring that operations are reflecting and acting on the key priorities
of the department. Cohesive working across the network is key to
strong outputs.
Michael Charlton
Director of Investment
Department for International Trade
“Cohesive
working across
the network is
key to strong
outputs”
SRO standards
Professional Standards specifically for SROs are currently under
development which will form the basis for the subsequent SRO
training offer.
SRO
15
Healthy Start Vitamins contract, Department of Health and Social Care
Under the statutory Healthy Start Scheme, the Department of Health and Social Care procured a five year framework agreement with a value of £2.5m for the manufacture of
children’s vitamins for low income families with children under the age of four (who are in receipt of certain benefits). Vitamins are purchased by local public sector
organisations that reclaim the cost from the Department of Health and Social Care. The ordering, supply and reimbursement arrangements are complex, with multidisciplinary
support required to ensure that the scheme is maintained in line with statutory obligations.
The Department of Health and Social Care Contract Management Team carry out an assurance and capability building function. A selection of key contract management
activities are carried out by the team, as well as the cross functional interactions at each contract lifecycle stage, which are set out below.
Stakeholder, supplier and market
engagement stage
The Healthy Start Vitamins Policy Lead established a
Virtual Procurement Team that convened weekly to
plan and execute the procurement of Healthy Start
Vitamins. The team included members from
Complex Procurement, the Contract Management
Team, Government Legal Department and NHS
Business Services Authority (the Department’s
appointed Contract Managers for the Healthy Start
Scheme), with specialist advice periodically provided
by the Department’s Lead Pharmacist and externally
appointed subject matter experts.
The Department of Health and Social Care will
make the vitamins available through its appointed
storage and distribution provider and invoices
and payments will be handled through a
transaction processing provider. To mitigate the
risks of providing the service via multiple
suppliers, the Virtual Procurement Team explored
the division of roles and responsibilities between
the suppliers, contractual mechanisms to
facilitate their cooperation and the implications
for the end customer. Two market engagement
events were also held with potential suppliers to
scope out the specification for the products.
Procurement stage
This stage was led by the policy lead. The
Contract Management Team conducted
an iterative review of the procurement
documentation, focusing on the contract
management requirements in the terms and
conditions, specification and tender evaluation
questions, making recommendations to
strengthen them where appropriate.
The Virtual Procurement Team maintained
a risk and issue register from the outset of
the process and in advance of issuing the
Invitation to Tender, the Contract Management
Team participated in a formal risk workshop to
consider the risks associated with programme
and ensure bidders’ documentation was
amended accordingly.
Tender evaluation was mainly conducted by
NHS Business Services Authority and Policy
colleagues. The Contract Management
Team evaluated responses on the contract
management elements of the tender
questionnaire and participated in the moderation
meeting.
Contract and supplier management stage
A formal handover meeting was conducted between
Complex Procurement, the Contract Management Team
and the NHS Business Services Authority, the appointed
contract managers.
The Contract Management Team and Complex
Procurement completed the Classification and Risk
Tool, which categorises each contract into Gold, Silver
or Bronze. The tier dictates the contract management
standards that need to be fulfilled and the level of support
provided by the Contract Management Team. The Healthy
Start Vitamins contract is categorised as Silver.
Complex Procurement contributed to the completion of
tools such as the Contract Management Plan, to ensure
that the benefits of the procurement are highlighted
and realised by NHS Business Services Authority. NHS
Business Services Authority will compile a deliverables
and obligations matrix with the support of the Contract
Management Team, enabling them to monitor and
improve supplier compliance.
Throughout delivery, the Contract Management Team
will provide support and conduct assurance on the
implementation of its standard approach to contract
management.
CASE STUDY 1
16
Work and Health Programme (WHP), Department for Work and Pensions
A £500m contract supporting 250,000 people with disabilities, long-term unemployed and people requiring intensive support to find sustained employment. The programme
delivers intensive personalised employment support to participants, including a key worker, mentoring and peer support, integrated access to specialist support networks and
support from experts with knowledge of the local labour market.
A selection of key contract management activities and cross functional interactions at each stage within the contract lifecycle are set out below.
Stakeholder, supplier and market
engagement stage
The Contracted Health and Employment Services
directorate (CHES) account management team led
workshops with providers and internal stakeholders
(commercial, finance, performance management,
strategy, operational policy, Jobcentre Plus and local
authorities) to identify lessons learnt from previous
employment programmes.
The high level design of the WHP was delivered by the
CHES account management team, strategy, finance
and commercial to ensure it was deliverable,
commercially viable and delivered Ministerial priorities.
Once the design was set, the WHP Project was
established. Project team change specialists were
tasked with programme delivery, managing changes
across the Department and writing the contract
specification using input from CHES account
management team, strategy, commercial, Jobcentre
Plus, IT, legal and HR.
Strategy and CHES analysts worked with finance
leads to input into the ‘value for money’ section of
the business case.
Procurement stage
The commercial team designed and led the
procurement phase with the CHES account
management team providing support through
the dialogue phase by testing that what bidders
described was realistic and deliverable.
The CHES account management team
maintained a continuous dialogue with the
commercial team to ensure they could
effectively manage and deliver the expected
business benefits when the contract went live
running, e.g. by providing input on performance
terms and conditions and payment validation
systems. They also supported the due diligence
exercise through identifying risks in the
proposed delivery proposals.
Alongside the procurement process, the project
team, CHES account management team
and commercial expanded on the contract
specifications to write supplier guidance for the
contract.
Contract and supplier management stage
Accountability for the contracts’ spend, delivery and
performance was transferred to the CHES account
management team. The team held workshops with
suppliers and commercial colleagues to gain assurance
that required implementation activities were being
carried out to plan.
The CHES account management team is accountable
for the performance of the contract. They are also
accountable for ensuring a robust system of financial
control is in place, together with a process for reporting
and understanding performance. They own provider
guidance and leads on changes to guidance to ensure
that the programme performs, impacts wider policy
changes and delivers the Department’s priorities.
The team work in partnership with commercial, finance,
operations, legal and many other expert domains
to deliver on these accountabilities. This includes
identifying and managing risks that could impact the
contract, impacting policy changes, and delivering
contract changes where required.
CASE STUDY 2
14
A1
BUSINESS ACUMEN
Foundation Practitioner Expert
Highlights risks, documenting findings and working
collaboratively to feed into decisions on risk management
approach.
Assesses risks, documenting findings and working
collaboratively to agree and implement risk management
approach.
Analyses risks and margins of error to make effective
decisions on risk management strategies. Manages trade-
offs and takes calculated risks to achieve organisational
objectives, taking account of possible changes in the
external environment over the contract term.
Works with complex evidence and data to recognise
trends.
Assesses a wide range of complex evidence and data
to identify trends; evaluates costs, benefits, risks and
potential responses.
Reviews and presents conclusions from a wide range of
complex evidence and data; identifies and resolves
problems, making decisions when data is not sufficient;
assesses the robustness of these conclusions against
plausible scenarios.
Communicates with a range of colleagues to understand
risks and opportunities.
Communicates and works collaboratively with
stakeholders to identify risks and opportunities,
contributing to recommendations.
Forms a cross-functional network; recognises when to
involve the right stakeholders and uses their knowledge
to make recommendations and decisions on risks and
opportunities.
Builds market and financial awareness and understanding
of stakeholder requirements.
Supports the achievement of value for money, developing
market knowledge, financial awareness and understanding
of stakeholder requirements.
Leads on applying the concept of value for money, using
market insight and financial awareness to advise on
successful return on investment for contracts.
Understands and articulates commercial motivations of
suppliers.
Articulates and accounts for commercial motivations and
expected behaviours of suppliers.
Develops strategies which map onto changing operational
objectives and account for market drivers and commercial
motivations, including possible changes in market
dynamics.
Seeks specialist advice to inform decisions and approach;
supports in the application of the agreed solution.
Seeks specialist advice to inform decisions and approach;
applies the agreed solution, sharing insight with
colleagues.
Advises teams on when to seek specialist advice to inform
decisions and approach; collaborates across contracts to
identify and share solutions.
Contract literacy • Financial literacy • Risk mindset • Supplier market understanding • Tenacity • Decisive and clear thinking • Political insight •
Relationships and stakeholder management
Attributes
18
15
A2
RELATIONSHIPS AND LEADERSHIP CAPABILITY
Foundation Practitioner Expert
Demonstrates resilience and effective communication
when dealing with stakeholders and supplier
representatives, including escalation.
Demonstrates resilience and uses influencing, escalation
and relationship management techniques to obtain desired
outcomes. Manages day to day stakeholder and supplier
engagement.
Leads senior stakeholder engagement, communicating
with impact to shape strategic decisions. Leads
discussions with suppliers on any internal issues they
may have that would affect their ability to meet
contractual obligations.
Works flexibly in an environment of change, encouraging
and supporting colleagues to do the same.
Navigates complex environments successfully,
encouraging and supporting stakeholders to do the same.
Presents technical issues and resolutions to senior
stakeholders.
Provides colleagues with insight on engagement
approaches to achieve strategic outcomes.
Presents complex supply chain, contract and
portfolio issues.
Aware of best practice, identifying opportunities to
improve performance.
Maintains and shares a current knowledge of best practice
to drive performance.
Uses public and private sector insight to design processes
and disseminate best practice across the team and uses
maturity models to support organisational improvement.
Identifies and addresses own learning needs to improve
contract management capabilities; highlights team gaps.
Identifies and addresses own learning needs to improve
contract management capabilities; recognises team gaps,
recommending steps to build contract management
capability.
Evaluates the wider team's contract management
capability and experience, identifying and addressing skill
gaps.
Encourages new ideas from a wide range of sources and
stakeholders and uses these to inform own thinking.
Implements change at a local level, considering impact of
implementation on own business area and working with
stakeholders to identify and overcome challenges.
Uses public and private sector insight to advise and drive
change, setting and navigating governance and approvals
process.
Aware of indications of corruption, fraud and unethical
behaviour in supply chains, can recognise and escalate
breaches of standards.
Aware of indications of corruption, fraud and unethical
behaviour in supply chains; ensures adherence to
requirements, identifying and responding to breaches of
standards.
Influences stakeholders to eliminate corruption, fraud and
unethical behaviour in supply chains; reviews assurance
and directs action on breaches of standards.
Displays motivation to achieve contract objectives. Motivates self and colleagues to achieve contract
objectives.
Utilising Supplier Relationship Management
(SRM) skills and methodologies, motivates
stakeholders and suppliers to better achieve
contract and relevant organisational objectives.
Recognises value of diverse stakeholders and collaborates
with colleagues to achieve business outcomes.
Builds relationships and collaborates with a diverse range
of stakeholders to deliver business outcomes.
Builds and shares a diverse network with stakeholders,
identifying and leading new opportunies for
collaboration to deliver business outcomes.
Contract literacy • Financial literacy • Risk mindset • Supplier market understanding • Tenacity • Decisive and clear thinking • Political insight •
Relationships and stakeholder management
Attributes
19
21
B1
DESIGN AND ONGOING DEVELOPMENT
Foundation Practitioner Expert
Understands business case development and works with
colleagues to input into options appraisal.
Inputs into and collaborates with colleagues in the
development of a business case, using knowledge of the
business and organisational objectives.
Collaborates with colleagues in the shaping, development
and approval of a business case that supports the delivery
of organisational objectives.
Inputs into specification for deliverables and technical
notes and aware of stakeholders that should be
represented when producing requirements.
Develops specification for deliverables and technical notes,
identifying stakeholders that should be represented when
producing requirements.
Leads on providing specification for deliverables and
technical notes. Recognises gaps and contradictions
in the requirements and advises on the sourcing and
contractual consequences.
Captures and shares lessons learned and best practice
across team.
Identifies and shares lessons learned and best practice
across teams; ensures these are incorporated into
procurement exercises and policy approach.
Identifies, develops and shares lessons learned across
functions; draws upon cross-government best practice to
shape procurement exercises and policy decisions.
Uses knowledge of data sources to support design of
performance management process.
Defines and evaluates data sources to establish and
review KPIs, as well as flexibility required during contract
lifecycle.
Uses expertise to identify future proofing measures,
leading on development of new KPIs to maximise value
over the contract lifecycle.
Seeks awareness of the market to support decisions
around commercial arrangements and contract evaluation
methods.
Uses market insight and awareness to inform decisions
on commercial arrangements and contract evaluation
methods.
Applies knowledge of broader economic and market
conditions to challenge thinking and lead decisions on
commercial arrangements and contract evaluation
methods.
Demonstrates awareness of efficiency controls,
governance and approval mechanisms.
Develops efficiency controls, governance and approval
mechanisms.
Reviews and advises on efficiency controls, governance
and approval mechanisms.
Recognises importance of defined, comprehensive and
proportionate management information.
Develops, applies and reviews defined, comprehensive
and proportionate management information reporting
practices.
Advises on management information best practices to
ensure reporting supports achievement of
organisational objectives.
Aware of relevant legislation and contractual mechanisms
in relation to supply chain compliance and sustainability.
Designs and implements mechanisms to ensure visibility
and assurance of supply chain compliance and
sustainability.
Leads design and implementation of contract mechanisms
relating to supply chain compliance and sustainability,
anticipating and responding to new legislation.
Prioritises own workload in order to carry out activities
required to support resource planning.
Takes proactive view of contract end dates, overlaying
potential re-procurement or termination timescales.
Develops and applies processes to ensure contract is
resourced, adapting to organisation and supplier changes.
Analyses pipeline data to inform resource planning and
mitigate organisational risk. Commissions and ensures
adoption of processes to ensure contracts are resourced,
adapting to organisation and supplier changes.
22
B2
PROCUREMENT AND MOBILISATION
Foundation Practitioner Expert
Reads contract and recognises obligations. Inputs into
contract management plan and supports implementation
of contract tools and structured plans to manage risks and
stages of contract lifecycle.
Reads contract and extracts obligations. Prepares
contract management plan. Establishes and adopts
contract tools and structured plans to manage risks and
stages of contract lifecycle.
Reviews contract and extracts obligations. Prepares
contract management plan, sets requirements for and
designs contract tools and structured plans to manage
risks and stages of contract lifecycle.
Communicates with stakeholders to support structured
transition between contract award and service delivery.
Manages structured transition between contract award
and service delivery, communicating with stakeholders.
Oversees structured transition between contract award
and service delivery, leading stakeholder communication.
Aware of financial controls used to manage resources,
open book contract management and contract
management systems.
Proposes and implements updates to contract
management systems landscape. Provides insight into
application of financial controls to manage resources and
implications of open book contract management.
Sets direction of relevant contract management systems
and oversees implementation. Manages resources through
designing and ensuring adherence to financial controls,
including transparency requirements.
Understands and refers to appropriate benchmarks to
measure performance and savings.
Identifies and incorporates benchmarks to measure
performance and savings.
Identifies requirement and develops benchmarks, ensuring
adherence to measure performance and savings.
Informs procurement process through application of
technical experience.
Provides technical input and applies experience to
influence the procurement process.
Provides strategic input into procurement process. Uses
strategic thinking to analyse and manage impact of future
changes to the landscape.
Uses awareness of procurement regulations to support
compliance assessment; identifies value obtained by
procurement team (and potential areas of loss of value).
Applies understanding of procurement principles and
regulations to assess compliance, sustainability and
identify value obtained by procurement team; initiates
steps to prevent loss of value.
Makes compliance and sustainability decisions based on
procurement regulations; develops strategic approaches
to prevent loss of value.
Understands mechanisms to ensure supplier debriefings
that safeguard the Authority and support future
procurement exercises.
Designs and implements mechanisms to ensure supplier
debriefings that safeguard the Authority and support
future procurement exercises.
Shapes requirements and approves mechanisms to
ensure supplier debriefings that safeguard the Authority
and support future procurement exercises.
23
B3a
MANAGING CONTRACT DELIVERY
Foundation Practitioner Expert
Und
erstands methods for quality assurance of supplier-
p
rovided data on performance.
Q
uality assures and responds to supplier-provided data on
pe
rformance.
Reviews
identification and use of methods to quality
a
ssure and respond to supplier provided data on
pe
rformance.
C
ollects, validates and escalates data used to measure
pe
rformance. Uses understanding of data and performance
t
o support trend analysis and audits.
A
nalyses data to measure performance, conducting trend
a
nalysis and audits to inform decisions.
R
eviews data analysis and audits across multiple contracts
t
o measure performance. Shares trend analysis with
st
akeholders to support performance improvement.
A
ware of mechanisms to support the achievement of
c
ontract outcomes within budget and prevent uncontrolled
ch
anges to scope.
Us
es knowledge of mechanisms to deliver contract
o
utcomes within budget, improve performance and prevent
un
controlled changes to scope.
De
signs and ensures adoption of mechanisms which deliver
c
ontract outcomes within budget, improve performance and
p
revent uncontrolled changes to scope.
A
ware of indicators in identifying arising risks and issues.
I
nputs into deep-dive analysis to suggest risk management
m
easures and identify learning.
Ev
aluates data to identify arising risks and issues. Identifies
a
nd implements performance-related risk management
m
easures and learning following deep-dive analysis.
Ev
aluates data and uses market knowledge to identify
ar
ising risks. Shares insight and advises on performance-
r
elated risk management measures.
A
ware of dependencies that impact the contract's ability to
m
eet its objectives.
M
easures and adapts to dependencies so the contract
c
ontinues to meet its objectives. Identifies measures to
m
anage consequences to suppliers when the Authority is
un
able to meet dependencies.
Id
entifies dependencies and associated responses, ensuring
t
he contract continues to meet its objectives, and sharing
l
earning. Agrees measures to manage consequences to
supp
liers when the Authority is unable to meet dependencies.
Sup
ports stakeholder engagement in determining whether
c
ontracted provisions are to be discontinued, brought in-
ho
use or re-procured.
E
ngages with stakeholders to assess benefits and costs of
c
ontracted provisions being discontinued, brought in-house
o
r re-procured.
P
rovides direction and influences stakeholders on whether
c
ontracted provisions should be discontinued, brought in-
ho
use or re-procured.
A
ware of breaches and understands the dispute process in
t
he contract.
Id
entifies breaches and implements the dispute process in
t
he contract.
P
rovides insight and direction around the dispute process.
Und
erstands the requirements of and inputs into the set up
of
contract exit plan.
Us
es knowledge of requirements to set up contract exit plan
a
nd support its delivery.
D
raws on expertise to review the contract exit plan including
du
ring the life of the contract, and ensure its delivery.
S
hares information appropriately on ongoing and concluded
d
isputes with colleagues.
S
hares information and insight appropriately on ongoing and
c
oncluded disputes with stakeholders.
L
eads knowledge sharing by providing insight to
st
akeholders on disputes across contracts and suppliers.
S
eeks to identify new opportunities and suggests actions to
r
ealise benefits.
A
nalyses data to identify new opportunities and implements
a
ctions to realise benefits.
Id
entifies organisational opportunities and oversees
impl
ementation to realise benefits.
C
ollates and reviews management information to
id
entify areas of poor performance by suppliers
a
nd the Authority.
R
eviews and identifies new sources of management
information
to highlight areas of poor performance by
supp
liers and the Authority. Identifies and implements loss
av
oidance measures and improved ways of working.
S
ets management information requirements to identify areas
of
poor performance by suppliers and the Authority. Draws
o
n best practice to set strategy and processes, driving
c
ontinuous improvement.
Re
fers to and measures against the contract objectives to
e
nsure benefit realisation.
M
anages stakeholder engagement and review of contract
a
nd programme objectives to ensure benefit realisation.
P
rovides strategic oversight by assessing contracts against
org
anisational objectives to ensure benefit realisation.
B3b
EXIT AND TRANSITION
24
B4
CHANGE CONTROL
Foundation Practitioner Expert
Understands and inputs into the change process, seeking
advice on whether an adjustment is a change or a variation.
Implements change process to obtain maximum value from
the contract. Engages with stakeholders to apply and
communicate change-related adjustments.
Leads change process, including the communication
approach, to obtain maximum value from the contract
and/or reduce risk.
Provides inputs into updates to contractual
documentation, risk register, business case and financial
model based on implemented changes.
Ensures implemented changes to the contract are
reflected in contractual documentation, risk register,
business case and financial model.
Ensures implemented changes to the contract are
reflected in contractual documentation, risk register,
business case and financial model.
Supports the identification of best value for money options
as part of the options appraisal process.
Identifies best value for money options in collaboration
with colleagues as part of the options appraisal process.
Takes a strategic view across contracts to identify best
value for money options.
Collects data and inputs into risk assessments to support
decisions on supplier-led and customer-led change and
stakeholder engagement on change impact.
Analyses impacts to make decisions on change; engages
with stakeholders on potential benefits and challenges
where a change is not in the organisation's best interest.
Influences senior decision making based on the evaluation
of impact of change in the context of organisational
strategy. Challenges stakeholders and provides insight on
whether proposed changes are in the organisation's best
interest.
Understands positive impact of change in value creation
and supporting achievement of value for money objectives.
Seeks opportunities to create further value under contract,
which may include additional cost savings.
Uses expertise to identify and share opportunities to create
further value under the contract, which may include further
cost savings.
Aware of the impact of acting outside the lines of the
contract, enacting a change by action or process and the
waiver of rights by non-action.
Applies knowledge of impact of acting outside the lines of
the contract, enacting a change by action or process and
the waiver of rights by non-action.
Advises on the impact of acting outside the lines of
the contract, enacting a change by action or process
behaviour and the waiver of rights by non-action.
Reflects implemented changes to the contract in
contractual documentation, business case and financial
model.
Ensures implemented changes to the contract are reflected
in contractual documentation, business case and financial
model.
Ensures implemented changes to the contract are reflected
in contractual documentation, business case and financial
model.
25
B5
STAKEHOLDER AND SUPPLIER ENGAGEMENT
Foundation Practitioner Expert
Supports the identification of key stakeholders and draws
on their expertise.
Identifies and builds productive relationships with
stakeholders, adapting approach to audience to achieve
planned outcomes.
Identifies and builds productive relationships with key
stakeholders across the organisation; uses insight on their
motivations and behaviours to advise on optimal approach
to achieve planned outcomes.
Demonstrates influencing and communication skills,
articulating requirements, benefits, progress and risks to
stakeholders.
Analyses and articulates requirements, benefits, progress
and risks to stakeholders, responding effectively to
challenge. Demonstrates influencing and negotiation skills
to achieve contractual outcomes.
Leads in the communication of requirements, benefits,
progress and risks to stakeholders; responds effectively to
senior challenge and advises on the organisation's
response. Demonstrates influencing and negotiation skills,
challenging and holding stakeholders accountable to
achieve organisational outcomes.
Awareness of importance of and inputs into stakeholder
meetings.
Schedules and manages regular stakeholder meetings. Leads in designing an effective governance structure and
managing regular stakeholder meetings.
Gathers end user feedback, communicating with
stakeholders to inform performance management and
future procurements.
Manages gathering of end user feedback and its
distribution to relevant stakeholders; develops and
implements recommendations.
Draws on best practice to design new processes and ways
of working through analysis of end user feedback.
Shares insight gained from supplier relationships with
colleagues.
Obtains insights from network and from supplier
relationships, sharing with colleagues.
Identifies cross-government colleagues to share supplier
insight with, and establishes knowledge-sharing forums.
Aware of the role of Supplier Relationship Management
(SRM).
Understands the role of and manages inputs into Supplier
Relationship Management (SRM), including for
government’s strategic suppliers.
Identifies requirements for and leads inputs into Supplier
Relationship Management (SRM), supporting the
coordinated management of government’s strategic
suppliers.
Aware of dispute resolution options and requirements to
communicate information and outcomes to stakeholders.
Maintains knowledge of and can apply dispute resolution
options and stakeholder communication requirements.
Uses experience to suggest and apply optimal dispute
resolution options; leads and provides expertise during
formal negotiation and stakeholder communication
processes.
Communicates underperformance and impacts to
stakeholders.
Manages structured communication of underperformance
and impacts to stakeholders.
Advises in the structured communication of
underperformance and impacts to stakeholders.
26
B6
RISK MANAGEMENT
Foundation Practitioner Expert
Aware of the process for the identification and
management of risks and issues, including roles and
responsibilities and creation of a risk register.
Identifies and manages risks and issues, confirming roles
and responsibilities including ownership of risk register.
Designs and develops processes for the identification
and registration of risks and issues, including roles and
responsibilities.
Inputs into the creation of contingency plans with
proposed remedies.
Ensures contingency plans with proposed remedies are in
place, using knowledge to inform approach.
Oversees the development of contingency plans with
proposed remedies; uses expertise to devise solutions
and provide advice to colleagues.
Supports visibility and mitigation of risk through
maintaining risk register, sharing relevant risks with
stakeholders.
Ensures visibility and mitigation of risk through reviewing
and maintaining risk register, sharing relevant risks and
mitigation strategies with stakeholders.
Provides expert advice on mitigation strategies for risks
identified in the risk register.
Supports the development of business continuity plans
and supplier disaster recovery plans.
Leads in developing business continuity plans. Informs the
development of supplier disaster recovery plans through
evaluation.
Provides insight into the development of business
continuity plans and supplier disaster recovery plans
through evaluation and challenge.
Inputs into the monitoring of service-level agreements,
considering and managing risks posed by data capture,
processing and reporting.
Monitors service-level agreements, considering and
managing risks posed by data capture, processing and
reporting.
Provides oversight and advice in the monitoring of service-
level agreements, considering and managing risks posed
by data capture, processing and reporting. Identifies
impacts outside of individual contract and resolution
options.
Identifies and documents operational key risk indicators;
supports the implementation of appropriate mitigation,
contingency and recovery measures.
Manages identification and documentation of operational
key risk indicators; develops, challenges and implements
appropriate mitigation, contingency and recovery
measures.
Oversees the identification and documentation of
operational key risk indicators; draws on expertise to
review proposed mitigation, contingency and recovery
measures.
Understands process and key factors to consider when
assessing and evaluating strategic risks.
Assesses and proposes responses to strategic risks
considering organisational objectives and risk appetite,
supplier relationships and political landscape.
Evaluates and provides guidance on managing strategic
risks considering organisational objectives and risk
appetite, supplier relationships and political landscape.
Recognises opportunities to derive benefits from recorded
risks.
Identifies opportunities to derive benefits from recorded
risks; takes calculated risks to achieve benefits based on
evaluation and advice.
Takes an organisational view across contracts to identify
and derive benefits based on recorded risks; provides
advice and proposes solutions to achieve identified
benefits.
Ensures internal compliance with requirements e.g.
data security, anti-fraud measures and supply chain
sustainability.
Ensures internal and external compliance with
requirements e.g. data security, anti-fraud measures and
supply chain sustainability; challenges in instances of non-
compliance.
Ensures internal and external compliance with
requirements e.g. data security, anti-fraud measures and
supply chain sustainability; leads reviews and responses
to non-compliance.
The NAO Commercial and contract
management: insights and emerging best
practice document identified 20 insights
to be considered more strategically at a
government and organisational level. These
20 insights are referred to within the Contract
Management Professional Standards, as
illustrated by the table below.
The Cross Government Contract
Management Steering Group commissioned
a contract management guide for use as a
benchmark across departments, for which
examples of best practice from across
government were consolidated and findings
published in a Best Practice Guide and
template toolkit. The below table also details
where within the Guide to go for further
information on the activities referred to within
Section B of the Standards.
NAO Commercial and Contract Management:
Insights and Emerging Best Practice
Commercial Strategy
1. Make time to develop strategy
2. Properly develop strategy
Commercial Capability
3. Tailor capability to risks and opportunities
4. Clarify commercial and operational balance
5. Maintain ‘organisational capability’
Maintain Management and Sourcing
6. Be an attractive client
7. Be an intelligent client
8. Properly evaluate bids
9. Keep up competitive tension
Contract Approach
10. Ensure shared understanding
11. Understand risks
12. Design performance measures that work
Contract Management
13. Manage your own obligations
14. Know what suppliers are doing
15. Show what you care about
16. Understand suppliers’ motivation
Contract Lifecycle
17. Plan for uncertainties
18. Work towards business as usual requirements
Transition and Termination
19. Think about contract end up front
20. Allow time to consider potential end of contract
Cross Government Contract Management
Working Group: A Guide to Contract Management
A. Pre-Procurement Stage
B. Procurement and Mobilisation
C. Implementation
D. Operations and Administration
E. Performance Management
F. Financial Controls
G. Change Control and Benefits Realisation
H. Complaints Management
I. Benchmarking and VfM
J. Supplier Relationship Management
K. Client Relationship Management
L. Risk Management and Business Continuity
M. Exit Management
B4. Change Control
G. K.
B6. Risk Management
L.
B5. Stakeholder and Supplier Engagement
E. H. J. K.
B3a. Managing Contract Delivery
E. H. M. I
B2. Procurement and Mobilisation
A. C. E. F. D
B1. Design and Development
A. B.
17 20
3 11 14 17. 18. 19
18
18
17. 18.
19.
20.
19.
20.
5 7. 9. 12
10.
12.
10.
12.
1. 2.
14. 15.
16.
13. 14.
16.
13. 14.
15. 16.
13. 14.
15
3. 4. 5. 6. 7. 8. 9.
3. 4. 5.
6
6. 7. 8. 9.
ANNEX A:
Standards cross-referenced with NAO and Contract Management Guide
28
B3b. Exit and Transition
ANNEX B:
Senior Responsible Owner (SRO)
Foundation Practitioner Expert
SRO
What is an SRO?
An SRO, sometimes referred to as a Senior
Contract Owner (SCO), provides valuable
oversight in the management of one of more
contracts. They ensure there is an accredited
team of contract managers equipped to deliver
the contract successfully.
The individual assigned should assess whether
the contract continues to meet organisation
objectives and fits in with evolving departmental
structure and strategy.
Person specification
At a minimum, the SRO should be at Senior
Civil Service (SCS) level.
The SRO should have a comprehensive
understanding of the organisation that is
undertaking contract management activities,
and recognise the impact of such on wider
objectives.
It is essential that the SRO has a basic
knowledge of contract management. This
allows for sensible questions to be asked,
decisions to be challenged and responses to
be interpreted relating to the detail of the
contract.
• Making judgements about the resource
required for contract management; the
organisation of contract management staff; the
management information needed for effective
contract management; the funding of contract
management activities and related
governance.
SRO standards
Professional Standards specifically for SROs are
currently under development, which will form the
basis for the subsequent SRO training offer.
Key responsibilities
• Understanding how the whole contract
management lifecycle contributes to the
achievement of policy objectives and/or
delivery of business benefits
• Challenging advice being provided by contract
managers in respect of sourcing, contract
design and the management of contracts
during the implementation, operational and
termination phases
The gradient above shows the expected engagement levels of an SRO with their contract managers accredited at
different levels. It is likely that an SRO would need to provide more support and guidance to a Foundation-level
colleague, who may require more supervision, in comparison with an Expert, who should be largely autonomous.
The amount of intervention will vary between contracts and in any case, the SRO should provide oversight and
management throughout the entirety of the contract management lifecycle.
Limited SRO
engagement
required
Substantial SRO
engagement
required
29
ANNEX C:
Sources
How were the standards developed?
The Standards incorporate best practice from
across government and relevant insight from the
private sector.
Ta k i n g a cross-government approach, the
Standards were developed with input from
commercial and non-commercial colleagues across
departments as well as professional bodies, CIPS
and IACCM. A number of
pre-existing sources also fed into the
development of the Standards. These are
shown on the right.
Further detail on how the Standards
relate to the NAO Commercial and
contract management: insights and
emerging best practice document and
the Cross- Government Contract
Management Working Group Best
Practice Guide, can be found in Annex A.
NAO Commercial and Contract Management:
insights and emerging best practice
NAO Good Practice Contract Management Framework
Cross Government Contract Management Best Practice Guide
People Standards for the Commercial Profession
Success Profiles - Civil Service Behaviours
Civil Service Leadership Statement
Civil Service Code
30
Term Definition
T
he Authority
T
he organisation authorised to issue the contract.
A
wareness level
A
ware of contract management principles in the context of realising organisational outcomes.
B
enchmark
A
standard against which performance, cost and/or quality can be assessed.
B
enefit realisation
P
rocess for the identification, definition, tracking, realisation and optimisation of benefits to
e
nsure that potential benefits arising from a change are realised. Includes options appraisal,
ongo
ing assurance and the identification of implications of value leakage.
Breach
This refers to the failure of either party to comply with one or more of its contractual
obligations. A breach can be ‘persistent’ i.e. repeated failure or ‘material’ i.e. a breach of a
material term of the contract such as a failure to pay the charges. A breach of the contract
may give rise to the right for the injured party to terminate the contract and/or claim for
damages.
B
usiness case
A
document providing justification for undertaking a contract, evaluating the benefits, costs
a
nd risks of alternative options and describing rationale for the preferred solution.
C
apability area
D
istinct thematic areas of the Standards, within which activities and behavioural attributes
a
re grouped.
Change control note
Often referred to as a ‘CCN’, This is the written record of change to the contract made
under the contractual change control process.
Co
lleague
I
ndividual within the contract management team or wider government roles, including but not
l
imited to: policy, commercial, legal, finance, HR and project delivery.
Commencement date
This should be defined in the contract and sets out the date from which performance under
the contract is due to commence
– this may be a different date from the ‘Effective Date’,
which is defined below.
Comm
ercial
R
elating to the business environment in which a public or private sector organisation
o
perates, and/or members of the commercial function within a public sector organisation.
ANNEX D:
Definitions
31
Condition precedent
This is a condition (stipulated in the contract) that has to be met for the contract to take
effect, for example, the valid provision of a parent company guarantee. If a condition
precedent is not met, the contract will not come in to force.
Co
ntingency plan
P
lans for how the contracted provision will be provided in case of contractor failure (either
f
inancial or in terms of systematic under-performance, leading to early contract termination).
Co
ntract Management Professional Standards
A
set of standards describing the competencies and behaviours expected of successful
Co
ntract Managers. Consists of two sections: A. Acumen and Relationships and B. Technical
e
xpertise.
Co
ntract management plan
P
lan for how to manage a contract which sets out resources, risks and the various contract
m
anagement activities that will be carried out.
Co
ntract Managers (within scope of the
S
tandards)
P
ublic sector professionals who identify as contract managers as well as those within an
o
perational delivery or policy role who carry out contract management activities as part of this
r
ole; make decisions or provide advice that has a commercial impact; and/or take part in
s
upplier interactions or negotiations.
Co
ntract tools
T
ools and techniques used in effective contract management e.g. business continuity,
mob
ilisation, change control, monitoring and reporting benefit realisation and exit planning.
Damages
A sum of money awarded to an injured party for breach of contract to compensate for the
losses it incurred as a result of the breach.
Default
Any default of either contracting party in complying with its obligations under the contract.
D
ispute resolution options
O
ptions to resolve formal disputes, including arbitration, mediation, formal negotiation, expert
de
termination and use of service credits.
D
ispute resolution procedure
The process to be followed to resolve any dispute without/before referring to the legal courts
to decide the outcome. The details will be set out in the contract but could include mediation,
arbitration and/or expert determination.
Effective date
The date that the contract takes effect from
– this will either be the date that both parties sign
the contract (the date used is the date of the last signature) or as specifically stated in the
contract (which could be before/or after the signature date).
E
xit plan
A
plan setting out the process to be followed on termination or expiry of the contract,
i
ncluding the management of service continuity, data/knowledge transfer and any
im
plications on cost and personnel (e.g. TUPE).
32
E
xpert level
A
n individual involved in contract management who takes a strategic view, drawing on best
pr
actice to lead on achieving organisational outcomes.
F
oundation level
A
n individual involved in contract management who uses understanding of contract
m
anagement principles to input into successful delivery of organisational outcomes.
Indemnity
This is a contractual obligation to compensate a party for a defined loss or damage
by making a monetary payment, on a pound for pound basis i.e. compensating the
injured party in full for their loss. An indemnity is a harsher compensation
mechanism than contractual damages because there is no obligation on the injured
party to mitigate their losses. It is often used for breaches of intellectual property
rights or data protection obligations where the potential losses are difficult to
quantify but could be significant.
Initial term
The initial term of the contract before it is extended in any way. The initial term will
be defined in the contract along with each party’s right to extend the contract
beyond the initial term.
Insolvency event
This will be specifically defined in the contract but is used to denote some sort of
financial failure, for example, winding up or dissolution procedures started against a
party, the appointment of an administrator or simply a party being unable to pay its
debts, which will give the other party the right to terminate the contract.
Intellectual Property Rights
These are the rights that a party has over its intellectual property and can include
patents, rights to inventions, copyrights, trademarks, business names and domain
names, goodwill, rights in designs, rights in computer software, database rights,
know
-how and trade secrets.
K
ey performance indicators (KPIs)
M
etrics used to determine whether the contract is achieving its key objectives.
Liquidated damages
These are a type of damages which became payable on the occurrence of a
specific breach specified in the contract, for a defined amount. They are often used
where the delivery by specific milestones are critical to the success of the contract.
National Audit Office (NAO)
Scrutinises public spending for Parliament.
O
ptions appraisal – is down as ‘operations
appraisal
in online training
T
he evaluation of a number of potential options, with the goal of identifying a preferred
c
ourse of action.
P
erformance management levers
A
vailable tools to drive successful performance, including supplier MI, KPIs, incentivisation
m
echanisms, opportunity management and quality assurance.
33
P
ractitioner level
A
n individual involved in contract management who applies knowledge and skill to deliver
e
ffectively on responsibilities to achieve organisational outcomes.
R
atchet
A c
ontractual trigger for an increase in level of deductions, following significant failure.
S
ervice credits
A c
ontractual mechanism allowing deductions to be made from payments to the supplier(s)
, as
a
result of supplier performance failing to meet the performance standards of the contract.
Service level agreements (SLA)
Service levels will be specified in the contract and are intended to provide objective
measures of whether services provided by the contractor are likely to support the
underlying policy goal or business objective.
S
pecialist
A
skilled professional (internal or external) who provides authoritative advice in their relevant
f
ield e.g. legal, commercial or finance.
S
pecification
A
section or schedule of the contract defining the client requirements for the contracted
p
rovision.
S
takeholder
I
ndividual or group that can affect or be affected by the contract, including cross-functional
c
olleagues and networks, suppliers and end users.
S
upplier Relationship Management (SRM)
T
he practices and behaviours adopted to engage more collaboratively with suppliers to
im
prove delivery of government objectives and increase mutual value beyond that originally
c
ontracted.
T
echnical notes
F
urther information on contract provisions.
T
ermination
E
xit from the contract before the contracted end date, due to defined supplier failure or
v
oluntary early exit by either party.
T
rend analysis
A
technical analysis of historic activity based on existing data, used to forecast potential
d
evelopments.
34
T
UPE
The Transfer of Undertakings (Protection of Employment) Regulations set put to
protections for employees in the event of a transfer of the services they provide to a
different entity. For example, when an existing in
-house service is outsourced or
where a re
-procurement of a service is awarded to someone other than the
incumbent service provider. The regulations cannot be contracted out of, however
parties to a contract can agree where responsibility and liability for meeting the
TUPE obligations lie. This is a technically complex area and legal advice should be
sought when dealing with TUPE issues.
U
nethical behaviour
Unethical supplier practices. These include, but aren’t limited to, conflicts of interest,
accepting favors or gifts, inappropriately sharing confidential information, money
laundering, bribery and modern day slavery.
For more information on contractual definitions, processes and templates, please see the Cross Government Contract Management Best Practice Guide in Annex A.
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