The global skills and competency framework for the digital world

Contract management ITCM


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

SFIA 9 is in development

  • SFIA 9 beta due in early July 2024
  • SFIA 9 planned for publication October 2024

This is a prototype for SFIA 9. It is subject to change before publication.

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 KPIs
  • managing variations and adjustments to contract terms as business needs or market conditions evolve
  • assessing and handling risks associated with contractual agreements
  • integrating sustainability and ethical considerations into contract management
  • using contract management software and tools for improved efficiency and accuracy
  • managing contracts for cloud-based services, including service levels, data security, and compliance with cloud-specific regulations.


Defined at these levels: 3 4 5 6 7

Contract management: Level 1

Contract management: Level 2

Contract management: Level 3


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


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 due diligence and legal vetting underpin all procurement processes, affirming risk assessment and compliance in contractual engagements. 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


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, aligning with strategic objectives.

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

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

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