To deliver its programs, the Australian Government awards on average 70,000 contracts each year with an annual total value in the range of $40 billion to $70 billion.
Good contract management is an essential component in achieving value for money for Australian Government procurements. The Commonwealth Procurement Rules (2.10) state that “the ongoing management of the contract and consideration of disposal of goods are important elements in achieving the objectives of the procurement”. While this guide replaces the Australian National Audit Office’s Developing and Managing Contracts Better Practice Guide, it has been refocused to provide practical process guidance at a practitioner level for Commonwealth officials who manage contracts.
This guide is primarily for the management of procurement contracts. It may also be useful for other arrangements such as grants, memorandums of understanding (MoU), investments, as such arrangements generally require similar management activities to the processes in this guide.