Effective Contract – Putting the Right Content

• Due diligence – is this only about money?
• Duration of contracts – long or short which is best?
• Assets, warranties, and survivorship – matters beyond the contract?
• Main contractors and sub-contractors – the supply chain
• Invoicing, payments, and performance
• Contract and relationship management.

Managing Contract Lifecycle

• The contract and outsourcing life cycle
• Strategy decisions, the business case and analysis of the requirement
• Key preparations before tendering or negotiation begins
• Going to the market with a sound case
• Striking the deal
• Transitioning to new arrangements
• Day-to-day management of the contract
• End of contract.

Outsourcing Considerations

• Asset Management - The Business Impact of Maintenance
• Considerations in Outsourcing Maintenance – What to outsource and what not?
• Risks Involved

Auditing Newly Struck Outsourcing or Supply Contracts

• Is there a proper framework for contract and relationship management?
• Are our staff trained and understand their role?
• What are the key matters that need to be understood by our team?
• What are the areas that cause difficulty – teething problems?
• What about communications between both sides?
• What about invoicing, performance tracking and payment?
• Is there an effective way of setting up performance indicators?
• Can performance monitoring be counterproductive?
• What about risk management – are our risk registers complete?
• What if we want to stop the contract because of underperformance?

Auditing Mid-Maturity Outsourcing or Supply Contracts

• Is contract and relationship management working?
• Is the right business outcome being delivered?
• Is incentivisation working?
• Does the contract measure up to expectations?
• Can more be obtained from the contract?
• Are we still communicating?
• What if one party wants to exit the contract?

Auditing End-Of-Life Outsourcing or Supply Contracts

• Was the business case delivered?
• Was the contract good value-for-money?
• What did we learn from the contract?
• Should we extend, in-source or re-tender?
• Exit strategies – what are our options?

Auditing Procurement Processes

• Management and the procurement process
• Aontrols over procurement
• Tendering processes
• On-going due diligence
• Evaluation of value delivered.