Reflective Analysis of Contract Management: WA Auditor General Report

This report provides a reflective analysis of contract management issues identified in the Western Australian Auditor General's Report regarding the WA Schools Public Private Partnership Project. It examines pre and post-contract issues such as lack of clarity, inadequate contract management skills, poor stakeholder engagement, protracted negotiations, insufficient risk management, and deficient financial planning. The analysis includes recommendations from the report, emphasizing the need for a contract management plan, performance monitoring, risk-based audits, and formal review mechanisms. The report concludes by discussing the implications of these findings for the author's career and professional environment, highlighting the importance of applying contract management principles, leveraging technological resources, and integrating auditing requirements for improved project outcomes. Desklib provides solved assignments and past papers for students.

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Reflecting on Contract Management issues in Western Australian Auditor General’s Report
Introduction
The reflective analysis allows in-depth learning through recollecting main ideas and
principles from knowledge. In the current reflective learning process, the Western Australian
Auditor General's Report regarding WA Schools Public Private Partnership Project dated June
2018 has been analyzed. Learning from the entire course is applied in the identified scenario to
understand its implications in the author's own career and professional environment.
Pre and Post Contract Management Issues
The contract undertaken by the State with the EduWest consortium in the year 2015 was
under a Public Private Partnership (PPP). The preliminary issues identified with the contract was
a lack of clarity. However, some other aspects pre-contract issue includes the inability to form
and apply contract management principles, failure to device a financial plan for the stated
project, inability access risks for the entire project1. While there have been several contract
management issues as well.
Lack of Clarity: Though the project has well-stated objectives yet it aimed at
implementing its program across merely 1% schools. In absence of lack of clarity, the project
often becomes daunting and both parties are at significant risk into signing a contract without
1 Rene G. Rendon, ‘Contract management process maturity: Empirical analysis of
organizational assessments’, (NAVAL POSTGRADUATE SCHOOL MONTEREY CA
GRADUATE SCHOOL OF BUSINESS AND PUBLIC POLICY, 2009), 26

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being entirely sure of it. The long duration of the project implies several outcomes which will be
expected from the project.
Lack of Contract Management Skills: The lack of contract management skills in project
parties led to the absence of contract lifecycle management. Summaries of the main services and
conditions were hence not visible alongside the contracts. Though the auditor stated that the
project was on track yet, there was no effective methodology to evaluate it. This, in turn, makes
the contract more complicated and longer to view at higher levels. Application of contract
management principles enables reviewing services and conditions alongside discussion panels. It
also enables ease of communication amongst different parties. Therefore, such communication
prevents the opportunity for dispute amongst parties.
Lack of engagement: One of the largest pitfalls of this project is the lack of engagement
of parties to the project. Though there was presence governance yet the DoE lacked contract
management tools, hence the project could not take the full advantage of the PPP learning. There
was dedicated contract staff that determines the detailed functioning of the project, however,
there was no contract management plan or audit or inspection program. Monitoring was also
absent in the required contract. In such high-value contracts where there is a present a
tremendous amount of financial resources, contract management tools ensure building
maintenance along with other services to meet the contract specifications.
A level of engagement allows initial parties to draft the contract encompassing all
appropriate internal teams such that review of workflow processes can be customized. Workflow
processes are integral such that the right approval process is integrated prior to the contract I sent
across to third parties. The benefits of such a workflow process are to ensure stakeholders get

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appropriate visibility of the contracts implemented such that it can be managed with a high-level
view.
Protracted Negotiations: The project has another complication of an extended
negotiation. The length of the contract, as it was implemented for a period of 32 years can itself
create difficulty in the communication process. Such lengthy project delays outcomes and makes
difficult to realize revenues from the project, longer lead times and a potential money loss for
parties involved in the project2. There are considerable risks involved in such projects of longer
durations.
Lack of Risk Management: The project has not adequately identified the possible risks
with its implementation procedure. In the entire project lifecycle, there is bound to be certain
amounts of risks involved. Identifying the possible risks would enable focusing on the important
aspects, build a better contract management plan for the management of risk.
Lack of financial planning: One of the most integral missing elements in contract
management is the lack of financial planning. The project has not adequately identified the
financial plan and made suitable budgetary allocations. The project plan is rather general in its
terms and the financial resources are devoted to the entire project and there is no segregation of
items based on item heads.
Analysis of recommendations & process improvement
The recommendations provided in the report are related to the implementation of contract
management and training. The report strongly recommends developing a contract management
2 Uher and Davenport, ‘Fundamentals of building contract management’, (UNSW Press,
2009), 13

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plan, manuals and preparation of guidance materials for corporate service staff and principles.
The auditor strongly recommends that contract management principles are implemented and the
contract is operational in an appropriate manner. In the absence of guiding material, the contract
might not be able to meet its stated objectives. There would be cost overrun and there might be a
failure of the project at any juncture and cost overruns. This will convert into process
improvisation for all later projects and provide profitability for the project.
Another recommendation provided by the auditor is that the project needs to have
contract performance monitoring. DoE needs to implement monitoring at every stage such that
specific project outcomes can be met at each and every step. A risk-based audit along with an
inspection program has to be integrated for the project as well. In the absence of risk
management methods, the project might encounter several risks at each stage of the project,
which might hamper the entire outcome for the project. The recommendation by the auditor is
appropriate as it will allow conducting risks analysis for the entire project and accommodating in
any methods, systems and inspection tools for ensuring the project success. The risks analysis is
critical for every project as it will allow the project to design procedures to overcome the said
risks. It will enable process improvement for all later part of the project.
Last recommendation provided by the auditor's report is to develop a framework for
formal review and assessment of lessons from the project3. The length of the project itself
imposes a tremendous amount of challenges, hence implementing a formal mechanism for
review and assessing lessons will provide better lessons for other school maintenance and
building. Other sub-projects can learn from failures of previous projects and develop their plans
3 Khan and Khan, ‘Critical success factors for offshore software outsourcing contract
management from vendors’, (IET software 7, no. 6, 2013), 330

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accordingly. This will lead to entire process improvisation for all later projects and enhance the
outcome for the entire project.
Implications of the report in career and Professional environment
The report enabled the author with a tremendous learning opportunity. This reflective
learning experience allowed recalling knowledge that has been gained in class and applying the
same to a real case study. It enabled the evaluation of a real-life case study using principles of
contract management. This practical learning can be applied in career and professional
environment with a checklist to evaluate contracts. The author will be able to extend the
knowledge and skills learned into practical experience and evaluate contracts in a more effective
manner. Moreover, the various minute elements of the contract that are often left out in large
contracts have been identified, which is another part of the learning experience. This learning can
act as a professional skill and provide recommendations in live projects. The evidence of such
learning can enable applying appropriate contract management principles and governance
mechanisms. The author will implement technological resources such that the contract outcomes
can be maximized4. This contract has several fallouts due to which there can be potential loss in
costs, with the application of technological resources such challenges can easily be overcome.
The report enabled the author to learn regarding the importance of auditing requirements.
Auditing of a report allows reviewing of any challenges identified in the contract. In the absence
of auditing and reviewing any contract is destined to fail. therefore, in future professional
practice, the author will aim at integrating these contract management principles for a better
outcome in professional projects. The author has gained skills and becomes well-acknowledged
4 Young and Philpott, ‘Tariff generation, invoicing and contract management’, (U.S.
Patent 7,949,555, 2011), 13

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of the ways to review a report and identify its fallouts. This entire experience has added
tremendous value to the entire process of learning.
Conclusion
To conclude, it can be said that the report enclosed had several fallouts when evaluated
on the basis of contract management principles. Though a few deadlines have been already met
in the project, there is no opportunity for the project stakeholders to evaluate the project
outcomes. Thus, applying contract management principles would allow a better outcome for the
report.
Bibliography

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Khan, Abdul Wahid, and Siffat Ullah Khan. "Critical success factors for offshore software
outsourcing contract management from vendors’ perspective: An exploratory study using
a systematic literature review." IET software 7, no. 6 (2013): 327-338.
Rendon, Rene G. Contract management process maturity: Empirical analysis of organizational
assessments. NAVAL POSTGRADUATE SCHOOL MONTEREY CA GRADUATE
SCHOOL OF BUSINESS AND PUBLIC POLICY, 2009.
Uher, Thomas E., and Philip Davenport. Fundamentals of building contract management.
UNSW Press, 2009.
Young, Simon Venn, and Andrew Bryan Philpott. "Tariff generation, invoicing and contract
management." U.S. Patent 7,949,555, issued May 24, 2011.