The global skills and competency framework for the digital world

Contract management ITCM

Managing and controlling the operation of formal contracts for the supply of products and services.

Guidance notes

Activities may include — but are not limited to:

  • managing contract creation, execution, and analysis
  • recommending actions to optimise financial and operational performance and minimise risk
  • contract management for cloud-based services.


Defined at these levels: 3 4 5 6

Contract management: Levels 1-2

This skill is not typically observed or practiced at these levels of responsibility and accountability.

Contract management: Level 3

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

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

Contract management: Level 4

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

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

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 non-discriminatory behaviour and legal compliance. Ensures that lessons learned from reviews are documented and promoted to all stakeholders.

Develops broad industry/category credentials as best practice champion.

Contract management: Level 7

This skill is not typically observed or practiced at this level of responsibility and accountability.