Contract management is a complex function, which consists of multiple activities. However, the primary activities can be divided into four main components.
- Establishing governance and the contract management team.
- Planning, establishing, and executing contract administration.
- Relationship management.
- Performance management.
Figure 7.1 below describes the four components of contract management and provides details on the steps to be taken in order for the contract management to be implemented and executed, as per good practice.
FIGURE 7.1: Contract Management: Four Main Components of PPPs