Can contract management rescue local government procurement?

| 0 Comments
AG.JPGThe Auditor General’s (AG) report on Municipalities made headlines for all the wrong reasons; there is something seriously amiss at the local Government level.

Paul Maddison, MD of Realyst Contract Management, raises the question of how Government can help the local entities right the ship, in this month’s SmartProcurement.

 

South Africa has arguably some of the most well defined frameworks and policies; the challenge is in implementation - it needs skills, champions and commitment.

However, there are few initiatives that can deliver more value than implementing the National Treasury Framework for contract management, says Maddison.

Event Alert! SmartProcurement is hosting a Public Contracts - Governance Workshop on 22 August 2012 in Gauteng, which will discuss the practical and legal implications of, and how to plan for, the new contract management framework.

Why prioritise contract management?

Bearing in mind that Government delivers services through the contracts it enters into, it is no wonder that service delivery is a burning issue in South Africa when more than 70% of Municipalities were qualified on poor supply chain and contract management practices by the AG.

But let’s consider the major challenges:

Service delivery
It’s about making sure suppliers deliver what they promise, and that Government gets value for money. The way to achieve this is through the management of key strategic, high-value contracts - ensuring they are well structured with performance measurements.

Make these contracts visible to management; identify the key milestones and delivery dates; monitor performance and payments against contract deliveries; and have strong documentation as a basis for taking action.

Internal Controls
Know what contracts exist and underpin these with copies of the contract documents.

Assign owners responsible for delivering the contract terms; check what is payable against the contract; report on upcoming expiry dates; and understand the value of spend, where it’s going and how much is spent on administration agreements compared with key delivery items.

Put control in place to reduce the incidence of contracts going beyond their expiry dates, or re-contracting with poor performing suppliers, and standardise agreements that protect Government’s interests.

Skills
Document processes and understand the roles and responsibilities required to manage service providers. This will build contract management competency that can be shared across Municipal entities.

Measure staff performance based on the National Treasury Framework for contract management.

Contract management provides a quick-win for Government
Service delivery can be improved in a short period of time - the concepts and implementation are not difficult; the skills required are easy to train; the processes and requirements are not rocket science.

The country’s municipal entities require the will to improve; champions within the entities; and some guidance on how to the implement framework.

So the building blocks are there. But who in Government is willing to take up the initiative? For assistance with your contract management email Reaylst Contract Management pmaddison@realyst.co.za

Event Alert! SmartProcurement is hosting a Public Contracts - Governance Workshop on 22 August 2012 in Gauteng, which will discuss the practical and legal implications of, and how to plan for, the new contract management framework.

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

 

Career opportunites

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Salary: R 600 000 - R 650 000 ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
R600 000 - R700 000 per annum Location: ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
R850 000 - R1 000 000 per annumLocation: ...More

Commodity Manager

  • <500 000 Commodities Permanent Procurement Management Western Cape
R700 000 - R850 000 per annum,Location: Western ...More

National Supply Chain Manager

  • <500 000 Across borders Permanent Procurement Management Supply Chain
R750 000 - R1 000 000 per annum,Location: ...More

Industrial Engineer

  • <500 000 >500 000 Industrial Engineer Operations, Planning & Inventory Permanent Western Cape
R450 000- R500 000 CTC per annum,Location: Western ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
Category: Procurement,Salary: R700 000 - R800 000 per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Category: Consulting,Salary: R750 000 - R800 000 CTC ...More

Logistics Manager

  • <500 000 Across borders Logistics & Warehousing Permanent Procurement Management
Category: Logistics,Salary: R900 000 - R1 000 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Area of Specialisation: Planning,Salary: R500 000 - R650 ...More

Industrial Engineer

  • <500 000 Analyst Gauteng Industrial Engineer Permanent
R800 000 - R850 000 CTC per annum.Location: ...More

Security Manager

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R350K - R550K).This is ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R650k - R750k) excluding

Commodity Manager Raw Materials

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
(Total Cost to Company R980k - R800k) excluding ...More

Commodity Manager Logistics

  • <500 000 Commodities Gauteng Logistics & Warehousing Permanent
(Total Cost to Company R1mil - R900k).Industry: Engineering

Procurement Consultant

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Management
(Total Cost To Company 550K - 450K) includes ...More