Contract Management – On the buses!

Wednesday, October 5th, 2011

We have recently completed a large contract for training in Contract Management and have also won a contract with a large County Council to provide Contract Management training services. We are continually researching the subject. In July 2011 a report was published by the Comptroller & Auditor General – Jersey “Management of the Bus Contracts”. We provide some extracts that raise points that are relevant to most organisations. As you read it wait for the punch line!

“There are respects in which the operation of the bus contracts has not been satisfactory.”

“An initial failure to identify the benefits to be obtained from the contract and the later inability to align the terms of the contract with more recent corporate aims have influenced the whole contract period.”

“The initial agreement of a contract should include agreement of the means by which a contractor’s compliance with performance standards is to be monitored so that the performance and penalty provisions can be applied in practice.”

“Whilst it is clear that the penalty regime provided in the bus contract was not implemented, in view of the uncertainty of the data available it is difficult to be precise about the consequences of this failure.”

“The official contract for the schools and leisure service was not signed until January 2010 although the service commenced in January 2007 owing to legal delays.”

“The initial contract was agreed on the basis of professional advice.” (Our emphasis).

So there we are. There is valuable information for our readers to consider in this report.