Contract Management: The Good, the Bad, and the Avoidable
In the world of procurement and commercial delivery, contracts are more than just legal documents, they are the foundation of value, accountability, and outcomes. Yet, in many organisations, contract management is either overlooked or treated as an afterthought once the ink is dry.
Done well, contract management delivers measurable benefits. Done poorly, it becomes a source of risk, inefficiency, and wasted opportunity. So, what separates the good from the bad, and how can organisations shift the dial?
What Is Contract Management?
Contract management is the discipline of actively overseeing the performance, obligations, risks, and opportunities associated with a contract. It spans the full contract lifecycle, from mobilisation through to exit, and should be a live, ongoing process, not a one-off event.
What Good Contract Management Looks Like
- Clear Ownership and Governance
Every contract should have a named contract manager with a clear mandate, supported by a defined governance structure and decision-making hierarchy. Accountability matters.
- Visibility and Control
The best contract managers know the key deliverables, milestones, and obligations and they have the tools to track them. Good contract management ensures that nothing gets missed, and performance can be evidenced at any time.
- Collaborative Supplier Relationships
Good contract management isn’t just about compliance, it’s about partnership. Building trust with suppliers, holding honest conversations, and working together to resolve challenges leads to better outcomes and fewer disputes.
- Proactive Risk and Issue Management
Risks are identified early and managed before they escalate. Issues are logged, tracked, and resolved. Good contract managers don’t just react, they anticipate.
- Performance and Value Monitoring
Regular reviews against KPIs, SLAs, and commercial benchmarks are in place. Good contract management focuses on continuous improvement and delivering the best possible return on investment.
- Structured Exit Planning
Even the best contracts come to an end. A good contract manager plans for this well in advance, ensuring continuity, compliance, and minimal disruption.
What Bad Contract Management Looks Like
- Clear Ownership and Governance
Every contract should have a named contract manager with a clear mandate, supported by a defined governance structure and decision-making hierarchy. Accountability matters.
- Visibility and Control
The best contract managers know the key deliverables, milestones, and obligations and they have the tools to track them. Good contract management ensures that nothing gets missed, and performance can be evidenced at any time.
- Collaborative Supplier Relationships
Good contract management isn’t just about compliance, it’s about partnership. Building trust with suppliers, holding honest conversations, and working together to resolve challenges leads to better outcomes and fewer disputes.
- Proactive Risk and Issue Management
Risks are identified early and managed before they escalate. Issues are logged, tracked, and resolved. Good contract managers don’t just react, they anticipate.
- Performance and Value Monitoring
Regular reviews against KPIs, SLAs, and commercial benchmarks are in place. Good contract management focuses on continuous improvement and delivering the best possible return on investment.
- Structured Exit Planning
Even the best contracts come to an end. A good contract manager plans for this well in advance, ensuring continuity, compliance, and minimal disruption.
Why It Matters
Effective contract management isn’t just about ticking boxes; it’s about delivering real-world results. It ensures public money is spent wisely, private investment is protected, and outcomes are achieved in a fair, transparent, and value-driven way.
In an time of rising expectations, tighter budgets, and increasing scrutiny, strong contract management is no longer optional. It’s a strategic advantage.
Final Thoughts
Good contract management doesn’t happen by accident. It takes capability, clarity, and commitment. Whether you’re managing a multi-million-pound outsourcing deal or a short-term consultancy contract, the same principles apply: be proactive, be structured, and always focus on value.
If you’re looking to build or improve your contract management capability, our team at Pro Commercial Solutions can help. From training and process reviews to hands-on support, we offer a no-nonsense, high-impact approach.
