Contract review and renewal

At the completion or extension of a contract, you should review: 

• the extent that client needs have been satisfied 
• a summary of the regular feedback provided to the contractor during the contract term 
• the success of the contract in meeting its original objectives 
• future requirements of the contracted good or service 
• comparison of actual expenditure against the contract’s estimated value  
• developments in the marketplace 

Your review should be conducted early enough to, if required, call a tender prior to the existing contract’s expiry. The review should provide a clear understanding of the contract’s performance, future requirements and allow you to select the best course of action.   

Contract extensions must consider: 

• performance of the current contractor 
• effectiveness of the contract 
• improvements that can be negotiated 
• developments in the marketplace

Contract finalisation should:  

• review the success of contract completion 
• finalise warranty commitments  
• consider any transition requirements should a new supplier be engaged to fill an ongoing requirement  
• complete arrangements for contract review. This acts as a guide to future purchasing, improvement and accountability 
• satisfy reporting requirements, including those under the Western Australian Industry Participation Strategy 

When contracted products or services have an ongoing need, new contracts should: 

• be tendered and awarded prior to the expiry of the current contract 
• commence at the expiry of the existing contract 
• coincide with ongoing contract management, monitoring and the development of the public authorities’ forward procurement planning