Contract management

Contract management is the process of ensuring that the parties to a contract meet their obligations and that the contract achieves its objectives. It covers the contract lifecycle, from pre-contract activities through post-contract work. In Canadian government procurement, it is the phase that follows procurement strategy, requirements definition and acquisition.

The work includes monitoring contractor performance, managing changes, maintaining records, handling claims and disputes, and closing out the contract. The Canada Border Services Agency (CBSA) describes effective contract management as contributing to value for money and sound stewardship of public funds, as set out in its contract management audit materials.

Contract management versus contract administration

CBSA separates the broader contract management function from contract administration. Contract management spans the contracting process, including pre-contractual activity and post-contract activity. Contract administration is the narrower part that happens once a contract is in place.

According to CBSA, contract administration includes:

• monitoring contractor performance
• managing contract changes
• maintaining contract-related documents
• handling claims and disputes
• closing out the contract

CBSA also treats contract management as a post-award procurement phase. Its audit describes the function as ensuring that contractors meet contract requirements and that contract files are properly maintained. Source: CBSA.

Where contract management sits in the federal procurement roadmap

Employment and Social Development Canada (ESDC) organizes its procurement contracting process into four phases: procurement strategy, requirements definition, acquisition, and contract management, payment and close-out. Contract management is the fourth phase. In this framework it commonly includes contract administration, payment and close-out, so the work continues until the contract is formally closed.

This structure is described in ESDC's 2022 review of contract management. The review shows that departments treat the period after award as a defined stage of procurement, not an afterthought.

Treasury Board Contracting Policy and value for money

ESDC's review states that the Treasury Board Contracting Policy covers the full contracting process. That includes preparation, negotiation, execution, contract administration and post-contract evaluation. The policy objective cited in the review is to acquire goods and services and carry out construction in a way that enhances access, competition and fairness while achieving best value.

Contract management is how that objective is carried through after award. It supports value for money, sound stewardship of public funds, and delivery of the program or service for which the contract was awarded.

The PSPC Contract Management Guide

Public Services and Procurement Canada (PSPC) provides a Contract Management Guide for its employees, including Responsibility Centre Managers. The guide is listed in the guides section of the CanadaBuys buyer portal, and it is intended to help PSPC staff manage procurement activities.

Procurement standards also frame the wider process. ISO 10845-1:2020 sets out generic procurement processes and procedures for public and private organizations buying goods, services, construction works or disposals. See the ISO standard page.

What contract management means for suppliers

For a supplier, contract management is the stage where the contract is delivered and judged. The specific requirements depend on the contract, but CBSA identifies several matters that fall within contract management:

• performance against the contractual requirements
• compliance with approved changes
• provision or retention of contract-related documentation
• resolution of claims or disputes

Bid teams should read a solicitation with these matters in mind. Suppliers should plan for how they will track performance, document changes and keep records through to close-out, because the buyer's contract files are expected to be properly maintained.