Win-Win Model for Contract Management

Abstract

Change is the only thing which never changes in this world. To become a best organization, an organization has to change its goals periodically. In many public sectors, management of contracts is one of the most tedious processes and therefore the way how it is managed should be changed to transform the organization into a successful one. In addition to the sequential model proposed in the base paper, a new approach to manage the contracts in the organization is proposed. In this approach, the contract management activities are grouped into three areas namely (1) Service Delivery Management, (2) Relationship Management, (3) Contract Administration. Good contract management goes much further than ensuring that the agreed terms of the contract are being met – this is a vital step, but only the first of many. No matter what the scope of the contract, there will always be some tensions between the different perspectives of customer and provider. Contract management is about resolving or easing such tensions to build a relationship with the provider based on mutual understanding, trust, open communications and benefits to both customer and provider – a „win/win‟ relationship.