Municipalities

Integrated contract monitoring & contract management for municipalities

In the social domain, widespread decentralization has characterized the last few years and as a result the purchasing volume among municipalities is increasing. Lawful and efficient purchasing, ensuring community funds are used and spent in a transparent and responsible way, is high on the agenda for every municipality. Purchasing must make a positive contribution to a municipality’s general performance level. The concrete objectives related to Purchasing must correspond with the municipality’s all-round objectives. Purchasing must also support good governance and be based on the principles of equality, motivation and trust. It must also support administrative and official integrity, for example by following the established codes of conduct, thereby avoiding, among other things, conflicts of interest. Last but not least, Purchasing needs to operate in a socially responsible way, as well as supporting and following up on social return, while also being innovative, limiting or avoiding risks, complying with the law and regulations, contract compliance, etc.

 

This increases the importance of contract monitoring and contract management. Correct registration, monitoring and management of contracts is the main objective when it comes to contract management. Good contract monitoring forms the basis for contract management and ensures more efficient processes. Good contract management ensures that all parties involved in an agreement fully comply with their obligations, so that the operational objectives of the contract and the objectives of the municipality are met.

ContractSoft is the solution for integrated and improved contract monitoring & contract management for municipalities!

Phased Approach

Not every municipality is in the same phase in terms of contract maturity. The Netherlands Purchasing Center (the NIC) has developed the NICV model together with the Hanze University of Applied Sciences.

When a municipality is in phase 1 or 2, it is best to start with Contract Monitoring only. ContractSoft supports municipalities in these phases with its Contract Registration, Contract Management and Control modules and Real Time Analytics.

Contract management can be introduced starting from phase 3, whereby the full functionality of ContractSoft can be implemented and used.

It often happens that departments are in different phases within one municipality. It is possible to differentiate per department. It is important to define a good and phased approach and implementation.

ContractSoft offers you the opportunity to grow step by step, without having to change (software) solution. Your investment continues to pay dividends!

Contract registration and management

Contract registration and management involves the support of the administrative process, registering and managing contracts within your municipality. In addition, of course also the physical and digital management of contracts, so that the right information is available at the right time and in the right place.

 

What position does Contract Management occupy? Practice shows that the organization of contract management must be in line with the purchasing organization within a municipality. We distinguish between:

Central purchase

Contract management is centrally organized in your municipality.

Decentralized purchasing

Contract management is decentralized throughout the departments in your municipality.

Coordinated purchasing

Contract management is coordinated by the Purchasing department, where the Purchasing department is responsible for entering the contracts.

Hybrid purchasing

Contract management is coordinated by the Purchasing department, where the Purchasing department is responsible for the registration of subcontracting contracts. The departments within your municipality are responsible for their “own” contracts.

With ContractSoft it is possible to follow different models at the same time, whereby a transition (from one model to another) can be supported.

Who is responsible for contract management within your municipality? In terms of use and management we recognize the following roles (with the associated tasks and responsibilities) that can all be defined in ContractSoft: Contract Owner, Purchasing Advisor, Controller, Legal advisor, Contract Manager, Application Manager.

ContractSoft offers a comprehensive, flexible and user-friendly contract registration and management solution with real-time analyses for reporting and signaling, which also supports the different roles.

Contract Management

ContractSoft supports your contract management process. On the basis of the input that has been acquired, signed contracts and changes can be very clearly recorded and managed. All parties can be monitored to ensure that everyone is fully in compliance with the conditions stipulated in an agreement, so that the operational objectives of the contract and the objectives of your municipality are being met.

Managing a contract therefore costs time and money. Municipalities must make a choice in which contracts are eligible for contract management. Risk analysis is one of the methods that can be used, but also a “simple” cost-benefit analysis. Usually each municipality has its own mix of methods to select contracts for contract management.

Who is responsible for contract management within your municipality? In contract management we recognize the following roles (with the associated tasks and responsibilities) that can all be defined in ContractSoft: Contract owner, Contract manager, Contract manager, Purchasing advisor, Controller, Legal advisor, Contract administrator, Application manager.

 

For the execution of contract management, how the purchasing organization is organized within a municipality is decisive:

Central purchase

Contract management is centrally organized in your municipality.

Decentralized purchasing

Contract management is decentralized in the departments in your municipality.

Coordinated purchasing

Contract management can be implemented in various ways in your municipality. For example, by having specific contracts with strategic suppliers managed by the relevant departments.

Hybrid purchasing

Contract management can be implemented in various ways in your municipality. For example by having generic contracts with strategic suppliers managed by the purchasing department.

By using ContractSoft your municipality is able to:

  • Better use the qualities and skills your supplier has to offer
  • Gain more insight into a supplier as a whole instead of each contract, which means there is more insight when it comes to the added value of this supplier in your organization
  • Promote a more streamlined collaboration, harmony and satisfaction between a supplier and your organization
  • Improve supplier relationships
  • Improve internal and external communication
  • Better prevent commercial, financial and legal risks
  • Signal and implement cost savings. For example, by working more efficiently, less aftercare/repair work, timely insight into any additional work, contract savings)
  • More insight into risks
  • Reduce cost and improve service levels
  • To obtain better monitoring and control options
  • Increase knowledge power towards suppliers and provide better input to prepare for discussions and negotiations
  • A better division of the distribution of time and capacity to suit the interests of the contract and supplier

ContractSoft offers an extensive, workflow-driven, flexible and user-friendly contract management solution that allows you to focus on Quality, Money, Risks, Organization, Information and Time, with real-time analyses for reporting and signaling, while also supporting the different roles.

In summary, at ContractSoft

  • Everything is stored in one centralized system, giving each department insight into its own department and overall insight into the organization.
  • Storing the workflow per contract type to make sure procedures that have been agreed are followed. Delays will be avoided, thanks to the notification options available in ContractSoft. Reviews are made by the right people.
  • Thanks to the workflow, a contract can remain visible. The various dashboards provide insight into who has the contract. There is also an alert system built into ContractSoft if a contract remains with someone for too long (monitoring of deadlines).
  • ContractSoft offers alerts when contracts have to be canceled or when contracts are about to expire (and need to be renewed). ContractSoft also offers various dashboards for insight and overview with regard to these contracts.
  • In case of illness, a team leader can transfer the contracts from their dashboard to other colleagues with one mouse click, so less time is lost. This also provides insight into the workflow and the workload of the various people in the teams.
  • All financial obligations and rights are included in overviews (based on the period that the organization requires) within the dashboards.
  • Thanks to ContractSoft, the connections between the various contracts can be established with the underlying relationships (for example, partner agreement, under contract, etc.).
  • The dashboards ensure that contracts that have been set up with a particular party, the status of these contracts and how the negotiations with those contracts transpired, is immediately visible.
  • All communications stored together with the contract, all types of files can be stored in the ContractSoft documents system and version updates are carried out automatically. Access rights and insight can be defined per user or user group.