By Aria Tyler Winning a tender is just the beginning. What follows is the critical phase of post-tender and contract management, where the real work begins to ensure that the promises made in the tender are delivered.
This phase is about ensuring that everything runs smoothly from start to finish, ensuring that both the supplier and the client fulfil their obligations. It’s about striking a balance between meeting contractual commitments, managing risks, and maintaining positive relationships.
But how exactly can organisations achieve this?
Let’s explore the essential concepts, processes, and best practices in post-tender management to keep a project on track and deliver outstanding results.
Core concepts and processes
The key post-tender management activities include contract administration, performance monitoring, and change management with each ensuring the project progresses as expected.
Contract administration helps oversee the day-to-day implementation of the contract terms. It’s about maintaining timelines, ensuring deliverables are met, and any issues are swiftly addressed. An experienced contract administrator keeps things on course and that both parties adhere to the agreement.
Performance management involves continuously monitoring the project’s progress against agreed-upon key performance indicators (KPIs), which can range from delivery times to quality standards. If any aspect of performance falls short, corrective action needs to be taken.
Change management is often necessary because projects rarely follow their initial plan perfectly. Whether it’s a change in scope, budget, or timeline, a structured approach to managing these changes ensures that they don’t derail the entire project. Clear communication and proper documentation of changes are key to avoiding confusion and disputes.
Legal and regulatory aspects
It is crucial to understand how to avoid obstacles from legal and regulatory perspectives in contracts, especially in the sectors where the rules and regulations are somewhat rigid such as . Organisations must always be on the lookout for compliance issues. This ensures they will not be fined, penalised or threatened with contract termination.
There are few regulatory mechanisms that govern the contract and it is important to identify them. Whether it is maintaining safety measures or environmental/financial laws, businesses must ensure that they meet the legal requirements. Working to maintain no issues of transparency and disclosure when dealing with government contracts ensures integrity as well as credibility with the client.
Contractual obligations also have significance within business relations. Contracts are legal obligations, and thus, the intention to perform the obligations must be consistent. It is recommended that every aspect of the project be adhered to, including schedule and other requirements like deadlines, to minimise conflicts and keep the project on course.
Risk management and compliance
One of the biggest challenges in any project is managing risk. Risk management is about being proactive—identifying potential challenges before they arise and developing strategies to mitigate their impact.
By addressing risks early on, you can avoid costly delays and other issues down the line.
The first step is to identify risks. Every project has its unique set of risks, from supply chain disruptions to financial shortfalls. Once risks are identified, they need to be analysed based on their likelihood and impact. This allows project managers to prioritise the most significant risks and develop appropriate mitigation strategies.
Compliance plays an equally important role in risk management. Adhering to internal and external regulations reduces the likelihood of penalties and ensures the project remains in good standing with stakeholders. Ongoing monitoring of risks and compliance ensures that the project stays on course, even when faced with unforeseen challenges.
Performance management: Ensuring accountability
Post-tender performance management isn’t just about tracking progress—it’s about ensuring accountability and continuously improving processes. Project managers can monitor whether the project is meeting its goals and identify areas for improvement by setting measurable KPIs.
Supplier performance is just as important as internal performance. If suppliers fall short, it can impact the entire project. Regular performance assessments can help identify problems early, ensuring that underperforming suppliers are addressed before they become a bigger issue.
Performance management involves assessing where improvements are needed but also implementing those improvements in real time. This iterative process helps ensure that lessons learned from past projects are applied, leading to better outcomes and more efficient processes in the future.
Dispute resolution: Handling conflicts efficiently
Even the best-managed projects can face disputes.
Disagreements over contract terms, performance, or payments can arise at any time, and having a clear dispute resolution process is essential for keeping the project on track. Addressing issues early, before they escalate, can save time and money and prevent damage to working relationships.
The first step in dispute resolution is usually negotiation. Open communication between the parties can often resolve disputes quickly and amicably.
However, when negotiations fail, mediation might be necessary. This involves bringing in a neutral third party to help facilitate a resolution that both sides can agree on.
If mediation doesn’t work, arbitration or litigation may be required. While these formal dispute resolution processes can be time-consuming and expensive, they provide a definitive solution to complex issues. Ideally, though, disputes should be resolved before they reach this stage.
For businesses involved in tender writing and project management, mastering post-tender processes can lead to long-term success. Not only does it improve project outcomes, but it also builds better relationships with clients and suppliers, paving the way for future collaborations. Whether working with private-sector contracts or Australian government tenders, effective post-tender management is the key to turning successful bids into successful projects.
