ABSTRACT
This chapter offers some insight into the general principles, high level processes and organizational structures that will guide development of the contract management arrangements. The ultimate size and shape of the contract management function will be determined by a core set of activities, which are geared to the maintenance of contractual propriety and delivery of the agreement objectives. The cost of establishing and operating these processes will need to be balanced against the contract benefits and risks to their delivery. The primary activity of any contract management function is to ensure that the supplier is meeting satisfactory performance standards. There is a continuing trend towards contracts based upon a resource demand forecast. Contract management must consider the contractual implications of the options for remedial action in conjunction with the operational departments and service supplier. Contract management processes may be needed for the monitoring of special contractual security arrangements or especially critical quality requirements.
