Contract management

About this guide

Understand your responsibilities as a supplier, and how to maintain successful contract delivery throughout the life of a government contract.

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Effective contract management helps ensure obligations are met, issues are addressed early and the intended outcomes of the contract are achieved. The following areas are important to focus on throughout the life of the contract.

Managing a government contract

The sections below outline key areas suppliers should focus on during the contract period to support successful delivery and maintain a positive working relationship with government.

Maintain regular communication with the government contract manager throughout the life of the contract. The contract manager is your primary point of contact and should be consulted if there are any issues, concerns or uncertainties.

Discuss and approve any contract changes before they are implemented. Keep clear records of important decisions, approvals and changes throughout the contract. Good records can help manage delivery, clarify expectations and resolve disputes.
A strong working relationship with the government contract manager can help address issues early and support successful contract delivery.

You can help maintain a constructive relationship by:
- communicating openly and professionally
- raising issues early
- working with the contract manager to resolve concerns as they arise.
At the start of the contract, the government contract manager will usually arrange a kick-off meeting to discuss key aspects of the agreement, including deliverables, reporting requirements and key performance indicators.

If a kick-off meeting is not arranged, contact the government representative listed in the contract to request one.
Monitor your performance throughout the contract to identify and address issues early.

Activities that can help keep delivery on track include:
- understanding and meeting any key performance indicators and reporting requirements
- monitoring progress against agreed deliverables and milestones
- discussing challenges with the contract manager as they arise and proposing solutions
- actively participating in contract review meetings and milestone discussions.
Before the end of the contract, speak with the contract manager about whether the arrangement is likely to be extended, renewed or re-tendered. This can help you prepare for any transition activities and plan for future work opportunities.
Submit invoices in accordance with the instructions outlined in the contract. This includes sending invoices to the correct address or system and including any required reference numbers, agency details and contact information.

To help avoid payment delays:
- ensure invoices contain all required information
- submit invoices promptly and in the agreed format
- include any purchase order or contract reference numbers where required
- contact the contract manager if you are unsure about invoicing requirements.

Frequently asked questions

As a contract approaches its end date, the agency will review its future requirements and determine the most appropriate course of action. This may include exercising an extension option (if available under the contract), establishing a new contract through a procurement process, using another existing arrangement, or discontinuing the requirement if it is no longer needed.

Where a contract includes extension options, the agency may decide to extend the contract after considering factors such as contract performance, whether the arrangement remains fit for purpose, ongoing business needs and value for money.

Suppliers will generally be advised in advance whether an extension option will be exercised or whether the agency intends to undertake a new procurement process. Existing suppliers are not automatically awarded a new contract and may be required to compete for future opportunities. For further information refer to the SA Contract Management Policy on the Governance page.
If you are experiencing difficulties meeting your contractual obligations, you should contact the contract manager as soon as possible. Early communication gives the agency an opportunity to understand the issue and work with you to identify a solution.

Depending on the circumstances, you may be asked to provide a corrective action plan, address performance issues, reperform services, replace defective goods or take other steps to meet your contractual commitments.

Failure to meet contractual requirements may affect payments, contract extensions, performance assessments and future opportunities to do business with government. In serious cases, the agency may exercise its rights under the contract, including terminating the agreement.

The best approach is to raise issues early, be transparent about the challenges you are facing, and work collaboratively with the agency to resolve them before they impact service delivery.
As a contract approaches its end date, the agency will decide whether the contract should be extended (if the contract allows), replaced through a new procurement process, or whether the requirement is no longer needed. Existing suppliers are not automatically awarded a new contract and may need to compete for future opportunities through a new procurement process. For further information refer to the SA Contract Management Policy on the Governance page.
Price increases are not automatic. The contract will generally set out whether prices can be adjusted, when adjustments can occur and the process that must be followed. If your costs increase during the contract term, you should contact the contract manager as early as possible and provide any supporting information required under the contract. Any request for a price increase will be assessed in accordance with the contract terms and relevant approval requirements.
You are responsible for managing your subcontractors. While subcontractors may assist with delivering the contract, the government agency's contract is with you, not your subcontractors. You remain accountable for the quality, performance and delivery of all goods and services provided under the contract, including those delivered by subcontractors. Where required by the contract, agency approval must be obtained before engaging or replacing subcontractors.
Some contracts require suppliers to obtain approval before changing a subcontractor. This is because the experience, qualifications, capability or specialist expertise of a subcontractor may have formed part of the supplier's original offer and may have been considered during the evaluation process.

Approval helps ensure that any replacement subcontractor has the necessary capability to deliver the required goods or services and that the contract continues to be delivered as originally proposed. It also helps maintain the integrity of the procurement process by ensuring that significant changes are not made to the delivery team after the contract has been awarded.

The contracted supplier remains responsible for the performance of any subcontractors engaged under the contract.