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.

Levels of responsibility for this skill

3 4 5 6

Updates for SFIA 9

  • There is an updated version of this skill 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:

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

Show/hide extra descriptions and levels.

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 suppliers 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 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.