Contract Management Overview

The contracting process is a vital part of the commercial requirements of most organizations The OCS Contracts Module is designed to meet organizations requirements for the Recording, Control, Accounting and Reporting in relation to contracts and projects and to ensure efficient administration and control. Contract details and documents are access online. The Contract module can also be used for the management of internal projects.

The functionality of the Contacts Module incorporates two major processes:

• The "Request for Quotation", which is applicable to the tendering process
• The "Manage Contract" process. Which is applicable to the monitoring recording and reporting of contract activities.

Request For Quotation / Tender

Pro forma request for quotation and contract documents are held by the system. An organization can define the quotation and tender format and draw from a library of standard documents for inclusion in the quotation or tender.

Control of the Quotation Process

A "Supply Officer" who is responsible for the inputs and control of the commercial aspects of the quotation process. A "Contract Holder" who is responsible for the technical inputs and who will assume full control of any contract being awarded as a result of this particular Request For Quotation. The "Supply Officer" and "Contract Holder" may be the same person.

Vendors

Multiple vendors can be added to the RFQ but the contract can only be awarded to one vendor. After the quotations have been received, evaluated and approved. The details of the successful tender are entered in the Award Contract Details section of the RFQ.

Contract Checklist

The Contract checklist is a tool for use by the Contract Manager to compile a listing of items that must be in place and verified prior to the contracted works commencing. Standard checklist can be defined for various contract types. Checklist items can be flagged as complete and can have notes associated with each item.

Vendor Notes

Multiple notes specific to each vendor can be entered. Notes are date stamped and once accepted cannot be changed. Existing notes for the vendor can be display and reviewed. The Notes facility allows multiple global note types for the RFQ/Contract.

Scope

Following the awarding of the contract the Contract Manager enters all Contract Scope of Work items and the associated cost. Payment claims are made against scope of work items and approved by the contract manager. Claim amounts for a scope of work cannot exceed the scope of work amount. The invoice for the claim is then matched against the scope of work claim number.

Documents

Document associated with the contract can be attached to the contract. The documents must first be registered with the document register module. The documents can be of any type and include Microsoft Word, Excel, CAD, graphics and drawings. The document register manages revisions and the distribution of revised documents and drawings.

Contract Log

The contract log facility allows multiple notes to be entered for the contract. All notes are date stamped and once accepted cannot be changed. Existing notes can be displayed and reviewed.

Cost Allocation

Cost allocations can be made to one or more accounts. Account numbers are validated on entry and allocation percentages must total 100 percent.

Securities

Contract securities are maintained by the system and include security type, amount and Date for return. Rebates can also be applied to securities.

Retentions

Contact retentions are maintained by the system and include type, amount or percentage and Date for return. Rebates can also be applied to retentions.

Batch Controls

All transactions are input and edited on-line in batches, which must be balanced and listed prior to update. The batch can be recalled as many times as required for modification before it is updated.

Adjustments

Adjustments can be made to the contract value. Contract Variances can be for dollar amounts or time extensions. The adjustments may be a Positive (+) or Negative (-) variance.

Contract Summary

The Contract summary enquiry provides key information related to the contract.

Reporting

The Contract management module comes with a complete set of standard reports such as:

• RFQ Summary
• RFQ Status
• RFQ Detail
• Contract Summary
• Contract Detail
• Contract Monthly Status
• Contract Payments
• Contract Failed Bid

Additional reports and modifications to standard reports can be specified using the software tools provided with the system.

Interfaces

The Contract management module provides interfaces to existing purchasing and invoice matching systems.

Control Contract Costs

Help control and manage your contact costs. Contract management provides and single store of information for all you contract related activities. Costs can be controlled through the auditing of all contract variations and adjustments and the integrated purchasing and invoice interfaces.

• Central Contract Storage. All contract related information is stored centralized inside the contract management systems. This allows for simple access to all contract documents and decisions that have been made. The allows for better management and accountability of contract tendering, decision making and variations.
• Checklists. Ensure company protocol and procedures are followed for contract tendering and variations.
• Scope. Break the contract into manageable units each with their own set of controlled costs. Scope items that run under budget wont be automatically swallowed up in subsequent scope items.
• Integration. The integration with the purchasing and accounts payable modules ensures that contracts to run over budget without appropriate checks being put in place.
• Auditing. The contract module allows for full logging capabilities so that any decisions made regarding the contract can be accurately recorded. All changes in scope, cost or time can be audited and viewed for complete accountability.

Complete Contract Management

• Record tender process
• Authorize contract costs
• Record contract activities
• Approve Variations
• Monitor contract progress