Changes must be controlled Changes to services, procedures or contracts may Appropriate structures need to be in place • have an effect on service delivery, performance, with representatives of both customer and and on whether the contract represents provider management for reviewing ad value for money. The specification and authorising change requests administration of change control is an important Be careful that changes do not fall • area of contract administration. outside the of the original OJEU advertisement and conflict with procurement regulations seek advice if – you’re unsure It is particularly important that additional • demands on the service provider should be carefully controlled Formal authorisation procedures will be • required to ensure that only those new requirements that can be justified in business terms are added to the service contract A single change control procedure should • apply to all changes Make sure management understands what is Requirements for service performance happening reports and management information should be built into the contract and Management reporting procedures ensure that confirmed at the tender stage. information about problems with a contract reaches possible, use should be made of the those with power to act as soon as it is possible provider’s own management information and performance measurement systems For many business managers a summary of the service they have received along with a note of exceptions is normally sufficient Information requirements may change over the life of a contract 5. Seeking Improvements This section with seeking to make improvements principally through providing incentives to the provider; usually these are built into the contract itself. The aim is to have a continuous improvement in performance or value for money. What you need to do Points to consider Give providers reasons to improve Types of provider incentive include • guaranteed levels of capacity, revenue The aim of incentives is to motivate the provider to sharing and commercial opportunities improve by offering increased profit, or some Incentives to improve are normally • desirable benefit, as a reward for improved into contract terms performance or added value It is important that incentives are • balanced. They should not emphasise one aspect of performance at the expense of perhaps less visible, aspects Financial incentives should offer rewards • to both parties that fairly reflect any investment they have to make to achieve the saving in the first place Seek to down costs, not margins, to • allow a supplier a reasonable return to cover such items as training and development
Changes must be controlled Changes to services, procedures or contracts may have an effect on service delivery, performance, and on whether the contract represents value for money. The specification and administration of change control is an important area of contract administration. • Appropriate structures need to be in place with representatives of both customer and provider management for reviewing ad authorising change requests • Be careful that changes do not fall outside the of the original OJEU advertisement and conflict with procurement regulations – seek advice if you’re unsure • It is particularly important that additional demands on the service provider should be carefully controlled • Formal authorisation procedures will be required to ensure that only those new requirements that can be justified in business terms are added to the service contract • A single change control procedure should apply to all changes Make sure management understands what is happening Management reporting procedures ensure that information about problems with a contract reaches those with power to act as soon as it is possible Requirements for service performance reports and management information should be built into the contract and confirmed at the tender stage. possible, use should be made of the provider’s own management information and performance measurement systems For many business managers a summary of the service they have received along with a note of exceptions is normally sufficient Information requirements may change over the life of a contract 5. Seeking Improvements This section with seeking to make improvements principally through providing incentives to the provider; usually these are built into the contract itself. The aim is to have a continuous improvement in performance or value for money. What you need to do Points to consider Give providers reasons to improve The aim of incentives is to motivate the provider to improve by offering increased profit, or some desirable benefit, as a reward for improved performance or added value • Types of provider incentive include guaranteed levels of capacity, revenue sharing and commercial opportunities • Incentives to improve are normally into contract terms • It is important that incentives are balanced. They should not emphasise one aspect of performance at the expense of perhaps less visible, aspects • Financial incentives should offer rewards to both parties that fairly reflect any investment they have to make to achieve the saving in the first place • Seek to down costs, not margins, to allow a supplier a reasonable return to cover such items as training and development