Contract management ITCM

Managing and operating formal contracts, addressing supplier and client needs in product and service provision.

Revision notes

Updates for SFIA 9

Theme(s) influencing the updates for this skill: Support for procurement-related skills, Making SFIA easier to consume (enhance readability/guidance/descriptions), Making SFIA easier to consume (new levels), Making SFIA easier to consume (updates to skill name/skill description).
New level 2 added to support entry-level roles.
New levels have been added at levels 2 and 7.
Readability improvements have been made to levels 4 and 6.
You can move to SFIA 9 when you are ready - SFIA 8 skill descriptions will still be available to use.
Previous SFIA assessments or skills mapping are not impacted by this change.

Guidance notes

Activities may include, but are not limited to:

overseeing contracts from initiation and negotiation to renewal or termination
ensuring effective communication and collaboration with internal teams, suppliers and clients
maintaining alignment with laws, regulations and organisational policies
evaluating contract performance against agreed metrics and key performance indicators (KPIs)
managing contract variations and adjustments in response to evolving business needs or market conditions
assessing and mitigating risks associated with contractual agreements
integrating sustainability and ethical considerations into contract management
using contract management software and tools for improved efficiency and accuracy
incorporating contract management practices tailored to cloud-based services.

Understanding the responsibility levels of this skill

Where lower levels are not defined...

Specific tasks and responsibilities are not defined because the skill requires a higher level of autonomy, influence, and complexity in decision-making than is typically expected at these levels. You can use the essence statements to understand the generic responsibilities associated with these levels.

Where higher levels are not defined...

Responsibilities and accountabilities are not defined because these higher levels involve strategic leadership and broader organisational influence that goes beyond the scope of this specific skill. See the essence statements.

Developing skills and demonstrating responsibilities related to this skill

The defined levels show the incremental progression in skills and responsibilities.

Where lower levels are not defined...

You can develop your knowledge and support others who do have responsibility in this area by:

Learning key concepts and principles related to this skill and its impact on your role
Performing related skills (see the related SFIA skills)
Supporting others who are performing higher level tasks and activities

Where higher levels are not defined...

You can progress by developing related skills which are better suited to higher levels of organisational leadership.

Click to learn why SFIA skills are not defined at all 7 levels.

Show/hide extra descriptions and levels.

Levels of responsibility for this skill

Level 1

Level 1 - Follow: Essence of the level: Performs routine tasks under close supervision, follows instructions, and requires guidance to complete their work. Learns and applies basic skills and knowledge.

Contract management: Level 2

Level 2 - Assist: Essence of the level: Provides assistance to others, works under routine supervision, and uses their discretion to address routine problems. Actively learns through training and on-the-job experiences.

Assists in collecting contract performance data.

Produces standard reports on contract performance under routine supervision.

Contract management: Level 3

Level 3 - Apply: Essence of the level: Performs varied tasks, sometimes complex and non-routine, using standard methods and procedures. Works under general direction, exercises discretion, and manages own work within deadlines. Proactively enhances skills and impact in the workplace.

Acts as a routine contact point between the organisation and counterparties concerning contract management.

Supports the collection of contract performance data. Creates standard reports on contract performance.

Contract management: Level 4

Level 4 - Enable: Essence of the level: Performs diverse complex activities, supports and guides others, delegates tasks when appropriate, works autonomously under general direction, and contributes expertise to deliver team objectives.

Sources and collects contract performance data (such as pricing and supply chain costs), and monitors performance against key performance indicators.

Monitors progress against business objectives specified in the business case. Proactively manages risk and reward mechanisms in the contract.

Identifies and reports under-performance and develops opportunities for improvement. Monitors compliance with terms and conditions and takes appropriate steps to address non-compliance.

Identifies where change is required and plans for variations. Ensures, in consultation with stakeholders, that change management protocols are implemented.

Contract management: Level 5

Level 5 - Ensure, advise: Essence of the level: Provides authoritative guidance in their field and works under broad direction. Accountable for delivering significant work outcomes, from analysis through execution to evaluation.

Oversees and measures the fulfilment of contractual obligations.

Uses key performance indicators to monitor and challenge performance and identify opportunities for continual improvement. Develops strategies to address under-performance and compliance failures, including the application of contract terms.

Identifies where changes are required, evaluates the impact, and advises stakeholders about the implications and consequences. Negotiates variations and seeks appropriate authorisation.

Actively supports and engages with experts and stakeholders to ensure continual improvements are identified through review and benchmarking processes. Develops and implements change management protocols.

Contract management: Level 6

Level 6 - Initiate, influence: Essence of the level: Has significant organisational influence, makes high-level decisions, shapes policies, demonstrates leadership, promotes organisational collaboration, and accepts accountability in key areas.

Negotiates and resolves contractual issues, including failure to meet contractual obligations.

Promotes change control processes and leads variation negotiations when necessary. Champions continual improvement programmes, jointly developing strategies and incentives to enhance performance. Undertakes comprehensive financial evaluations.

Ensures due diligence and legal vetting underpin all procurement processes, affirming risk assessment and compliance in contractual engagements. Ensures lessons learned from reviews are documented and promoted to all stakeholders.

Leads the advancement and application of effective contract management practices within a specific business domain or category.

Contract management: Level 7

Level 7 - Set strategy, inspire, mobilise: Essence of the level: Operates at the highest organisational level, determines overall organisational vision and strategy, and assumes accountability for overall success.

Leads the strategic direction and governance of contract management processes across the organisation. Advises executive leadership on contract management risks and strategies.

Implements contract management strategies aligned with organisational goals and market dynamics, including oversight of significant contracts and associated legal risks. Acts as the escalation point for major disputes.

Promotes operational excellence in contract management, driving supply chain contracting improvements and innovation.

Establishes strategic partnerships, aligning organisational and supplier goals. Represents the organisation in key negotiations, ensuring strategic, compliant outcomes.

New level Small change