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PURCHASING
BY GARY BARKMAN
Contract Management and When to Consider
Gary Barkman
The more I teach purchasing sessions for anyone order, confirm the correct quantity and that it came
throughout the state, the more I get asked if we can in at the correct price or verify the price when an
discuss contract management. Having said that, I invoice is received.
would like to approach this topic from two different
angles. One, being the time frame from when contract As we get into service contracts it gets a little trickier,
management begins. The second, being the time that due to the multiple facets that may need to be managed.
one should even consider contract management. Do you have the right person for the job? Sure, it
would be simple for people to just say this belongs to
So, let’s discuss the most obvious topic first. When purchasing or another department, but would it really
do you begin with contract management? be practical? Would those people have the expertise
to make sure the contract is being serviced correctly?
The most obvious answer is the fact that you start I highly doubt that. Thus, this can be another reason
with the contract management after you’ve awarded contract management falls short for a district.
the contract. This is common sense and should not
be of any surprise to procurement professionals What may be another reason that contract management
throughout the state of Arizona or across the country. fails? Well, can anyone think of a time when they
felt there were too many hands in the cookie jar, so
Having said this, however, if we know when contract to speak? Can you say – yes? I’m sure that several
management begins, why does it give the appearance others could speak to an instance or two but may
that this is where procurement people have the prefer to remain silent, however it’s here that I try to
hardest time. What I’m trying to say is that contract convey to districts, not to involve anyone who is not
management is the one place where procurement participating with the contract.
professionals are lacking, whether it be due to lack
of time or not having the experience/skills to set Another area that lends itself to unsuccessful contract
themselves up for successful contract management. management is the fact that no thought, or at least
not much thought, was given to the requirements
Please note, this is not to say that every person who and who would be responsible for enforcing those
works with contract management is lacking. There requirements.
are different levels of contract management just like
there are different levels of knowledge throughout Well, do you remember at the beginning of this article
school business management. So, let’s begin to when I told you I’d like to approach this topic from
explain simple contract management. two different angles? Here’s the second angle.
You’ve awarded a contract to a supplier or suppliers We’ve shown that contract management begins after
and now you need to manage this contract. The a contract has been awarded. We’ve also shown
simplest of contracts may just need to verify that the that many contracts can fail due to bad contract
district has received the correct items on the purchase management for the reasons already mentioned.
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18 THE EDGE SPRING 2024
