Post-Award Contract Administration
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The procurement process does not end when a contract is signed. Contract management ensures both parties fulfill their reciprocal obligations. Accounting officers must appoint a dedicated contract manager or project management committee to monitor implementation, track key milestones, and manage delivery schedules.
Managing Contract Variations and Escalations
During long-term infrastructure projects, unexpected field realities often require changes to the original design. These contract variations are tightly regulated to prevent scope creep and corruption. Procurement laws establish clear limits on variations:
[ Variation Rules ]
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+---> Aggregate cap: Total variations cannot exceed a set percentage (e.g., 25%) of original cost
+---> Time limitation: Variations cannot be introduced after the contract period has expired
+---> Price justification: Rates for varied works must be verified against independent market surveys
Dispute Resolution and Liquidated Damages
Contracts must include clear clauses to address non-performance. If a contractor fails to deliver on time due to their own inefficiencies, the state applies liquidated damages—a pre-agreed financial penalty deducted from progress payments for every day of delay. It must also outline alternative dispute resolution (ADR) mechanisms, such as mediation or arbitration, to resolve conflicts without freezing critical public works.
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