5.2.1 Assign Contract Oversight Personnel

The contract owner needs to set up a suitable organization to manage the assigned contract. Depending on the owner’s other job duties, the owner may assign a contract manager to take on the day-to-day management of some of the owner’s duties on behalf of the owner. A contract management plan is typically prepared and approved by the contract owner that details specific activities to be taken.

Contract managers need to have a detailed knowledge of the contract and other relevant issues, such as service level agreements, and ongoing supplier performance. They need to possess appropriate skills (both specific contract management skills and more general commercial awareness and expertise), with access to relevant training and development. This means that experienced contract managers should be utilised on key contracts.

Other individuals will be assigned under the contract manager to observe and manage specific activities related to the contract. A contract administrator and a number of contract monitor(s) are often tasked with ensuring compliance with contractual terms and conditions, and manage changes during contract performance through to contract closeout and termination. Contract monitors observe work activities based on risk to verify contract compliance with safety, environmental, quality and commercial requirements. Some specific activities undertaken can include reviews of contractor work sites and field activities, pre-job briefings and job safety analyses, quality surveillance activities, inspection activities, and testing. They typically are required to keep of a log to document all activities, discussions and deficiencies, and any notifications that they provide to contractors or other stakeholders as required. Such documentation can be critical in the event any contract disputes arise.