Catering Services and Food Procurement (CSFP) Toolkit
Contract Management
This is the process, which ensures that all parties to a contract fully understand their obligations and ensure agreed milestones are met whilst delivering value for money outcomes. Contract management is important as it:
- Defines roles, responsibilities and goals
- Enhances customer-supplier relationships
- Increases efficiencies and value for money
- Manages risks and opportunities
- Monitors contract performance
- Minimises contract variations
The authority should issue the contract(s) under its own terms and conditions. These terms will cover the requirements as stated within the specification which form part of the agreement. They also include all elements which were discussed and agreed at the inception meeting after the award of the contract. The contractor should then take full responsibility for all requirements under the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE). This should be noted in the PQQ, the ITT and the contract.
It is recognised that the implementation of the PSFPI will not be an overnight process. It will be a continuous improvement cycle which uses monitoring and feedback to determine whether action is needed to take the initiative further. This is where contract management will be of great help.
The contracting authority needs to develop a method for monitoring implementation and progression of the PSFPI within their catering facilities.
A time-phased bar chart on an Excel spreadsheet is a simple method to show milestones and deadlines. This initial chart should be produced by the prospective contractor as part of the ITT document. Any necessary changes can be discussed and implemented at the contract inception meeting which is used as the contract introduction. The chart should include a regular review process throughout the contract period. Monthly reviews should be held between the authority and the contractor to discuss and resolve problems and concerns but also to present relevant performance metrics and Key Performance Indicators (KPIs).
Action plans specific to each catering facility need to be implemented by the caterer and will form part of the regular review meetings held between the contractor and the authority.
The contract management system, which should include relevant Key Performance Indicators, will allow measurement of the actual performance of the contractor.
Measurements are initially requested from potential suppliers at the tender stage and it is important to revisit these at a later stage. The metrics generated by the caterer at the tender stage and agreed at the contract offer stage will be key to assessing their performance against their proposals. There are other KPIs, based on surveys, which will also help to assess performance. The areas covered are: hygiene; range of menus; quality of food; quality of service; levels of complaints etc.
Customer feedback surveys should be used regularly by the contractor and should include the relevant elements from the KPIs. The survey results should be discussed at the contract review meetings.
Any issues raised in the day-to-day operation, especially around quality, service and hygiene, should be addressed immediately. The contract review process allows both parties to look at specific issues and agree on changes. Things that have been resolved at the contract review meetings should be discussed again at the next scheduled meeting.
Page last modified: 21 February 2008
Page published: 21 February 2008