Contract management

In short, a public organisation needs to monitor and manage a supplier’s performance to assess whether the public organisation is getting the full value that was identified during the procurement of the goods or services. It should determine how much monitoring and managing to do based on its assessment of risk and the costs and benefits of that monitoring and managing.

Monitoring and managing supplier performance should be a priority when the value and the risks associated with the procurement are high.

We recommend you read the following mix of guidance, success stories, and stories that others can learn from.

Risk-based approach to contracts

July 2004: Paper prepared for the Conferenz 5th Annual Internal Audit Forum.

New Zealand Transport Agency: Maintaining state highways through Network Outcomes Contracts

July 2020: The New Zealand Transport Agency is responsible for maintaining the state highway network. Effective and efficient maintenance keeps New Zealand’s state highways safe and reliable. We looked at how effectively and efficiently the New Zealand Transport Agency maintains state highways through Network Outcomes Contracts.

Inquiry into procurement of work by Westland District Council at Franz Josef

March 2019: This report concerns a decision of the Westland District Council to carry out work at Franz Josef to protect the town's wastewater treatment plant from flooding. The work was carried out on an urgent basis and resulted in the construction of a new 700-metres-long stopbank on the bank of the Waiho River. In this report, we acknowledge the serious nature of the flood risk the Council was dealing with, and the motivation of the elected members who were driving the decision to act in the community's best interests. However, we have serious concerns about what was done in this case.

Part 4: Building and implementing the wastewater scheme (2007 to 2012)

Summary: Inquiry into the Mangawhai community wastewater scheme.

Part 3: Maintaining relationships and monitoring contracts

New Zealand Transport Agency: Delivering maintenance and renewal work on the state highway network.

Part 4: What needs to improve

Spending on supplies and services by district health boards: Learning from examples.

Part 8: Managing the contract

Procurement guidance for public entities.

Risk-based approach to contracts

July 2004, paper prepared for the Conferenz 5th Annual Internal Audit Forum.

Part 4: Managing the contract

Achieving public sector outcomes with private sector partners.

Part 3: The Ministry of Health’s approach to procurement and contract management

Inquiry into the Ministry of Health's contracting with Allen and Clarke Policy and Regulatory Specialists Limited.

Other resources

From the United Kingdom, Contract management professional standards ("Guidance to help any civil servant who works with third-party suppliers or contracts, even if this is only a small part of your role.")