*) The officer fulfilling the role of demand owner will often also fulfill the role of contract owner during contract creation. However, an organization can also choose to have another person fill this role, instead of the demand owner. What to consider when doing so is discussed in Chapter 6.
For the supplier, the roles are as follows:
■ Delivery owner: responsible for achieving the Work To Be Done, having the people and resources available to do this.
■ Project or service manager: the person who organizes the operational execution of the goods and/or services that must be delivered.
■ Realization and verification manager: the person who has the substantive knowledge of the goods or services that must be delivered (WTBD), and who is capable of assessing what will be delivered to the client.
■ Vendor: responsible for selling goods and services.
■ Contract manager: responsible for the contract execution.
■ Contract administrator: responsible for the registration of all contract details that are generated during each phase of the contract life cycle and who provides all other people involved in the contract with the information they need.
Table 4.2 shows the distribution tasks, responsibilities, and mandates, in RASCI levels, of the people involved at the supplier’s organization during the CATS CLC phases. The I-roles are left out because they are an organization-specific consideration of the design of this level.
Table 4.2 RASCI table for the supplier showing the CATS CLC phases
**) The officer fulfilling the role of the delivery owner will often also fulfill the role of contract owner during contract creation. However, an organization can also choose to have another person fill this role, instead of the delivery owner. What to consider when doing so is discussed in Chapter 6.
The CATS CM methodology offers concrete tools for operational management from the moment that the contract manager becomes responsible for the contract – indicated as ‘R’ in the RASCI tables – and during the phases before the contract is signed – indicated as ‘C’ in the RASCI tables.
4.1.4. Steps in the contract management process based on CATS CM
When we zoom in on the contract management process, according to the CATS CM methodology, we can identify three stages: (1) the Initiate step, followed by (2) several cycles of the Plan-Do-Check-Act/Adjust steps and (3) the Conclude step (figure 4.3). This division applies to both the client’s and the supplier’s contract management process. PDCA has been broadly recognized as a good basis for process control. Originally, PDCA was applied to ‘continuously repeating processes’. In this case, however, there is a clear start and finish. The Initiate and Conclude steps were added to take that into account.
Figure 4.3 The steps according to CATS CM
Parts II and III of this book will offer more details on the activities that are involved during these steps.
_______________
1 Design, Build, Finance, Maintain, Operate
■ INTRODUCTION
The CATS CM methodology has been recognized as a proven contract management methodology for over ten years. Opting for contract management based on CATS CM provides an organization with the right tools to create a successful contract management structure, provided that the organization makes the right choices for implementing the preconditions.
CATS CM helps you come to grips with all types of contracts, as well as providing a solid foundation and structure. CATS CM is based on the vision of proactive contract management described in Part I of this book.
To get the most out of this methodology, the application of CATS CM requires a diligent implementation of contract management as part of the whole set of processes within an organization. The application of the methodology must always be made organization-specific, especially when organizations want to combine CATS CM with other project and contract administration systems.
The CATS CM pillars
To apply the CATS CM methodology successfully, it is important to first understand the four pillars on which the methodology is based and to ensure that the preconditions, as described in part IV, for structuring these pillars – throughout the organization and the entire contract life cycle – have been implemented. Without these preconditions and without a sound knowledge and understanding of these pillars, there can be no successful CATS CM application.
This part of the book explains the four pillars of the CATS CM methodology:
1. The difference between the Work To Be Done (WTBD) and All Other Contract Matter (AOCM) within a contract (Chapter 5).
2. The roles that emerge due to the contract and which must be established to ensure successful contract performance (Chapter 6).
3. The Contract Management Essentials (CM Essentials), the subjects on which the contract manager should focus (Chapter 7).
4. The contract management process, consisting of six steps, and its implementation through the use of contract management scenarios (Chapter 8).
Every contract contains articles, provisions, and appendices that can be divided into two groups for both the client and the supplier: The Work To Be Done (WTBD) and All Other Contract Matter (AOCM).
WTBD describes which performance, consisting of goods and/or services, must be delivered – and in which form and with what features (such as quantity, quality, time frames, and location) – and how the measurement of and accountability for the delivery has been arranged. Other aspects of the WTBD are the affairs the client has to arrange to ensure that the supplier can meet the performance obligation. All other provisions in the contract fall under the AOCM. Naturally, they also include agreements regarding actions that will be taken if the WTBD is not delivered according to the contract, as well as agreements regarding the collaboration between both parties that are not directly related to the WTBD (see figure 5.1).
Figure 5.1 The Work To Be Done and All Other Contract Matter
Examples of WTBD are:
■ Cleaning activities A, B and C are performed on a daily basis between 7:00 and 9:00 AM in buildings I and II.
■ The service desk is staffed with at least three people and is available between 8:00 AM and 6:00 PM.
■ Network administration will be implemented so that the network will have a guaranteed planned availability of 99.99 percent.
■ The supplier will demonstrate that the quality control system complies with the required standards to ensure that