Strategic Procurement - Managing Contract Performance

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Retention of Records

Under the provisions of the Qld Government's Public Finance Standards, purchase requisition and purchase order records must be maintained for a period of two full years after the one in which the transaction is raised. ie records for requisitions raised in 2002 must be kept until the end of 2004. Refer to Chapter 4(A).96 of the Financial Management Practice and Procedures Manual.

Reviewing Outstanding Purchase Orders

Responsibility Centres are required to review Open Purchase Orders on a bi-monthly basis. Refer to the QUT Financial Management Practice and Procedures Manual chapter 4(A).97 to 100 for details.

Managing Supplier Performance/Non-Performance

The purpose of monitoring suppliers is to maintain an accurate record of events during a contract and to ensure that there is compliance with the terms and conditions of the contract. Financial accountability requires that the contract administration be conducted in accordance with the contract and that appropriate historical records are in place to provide an audit trail for payments.

Once a contract document, Letter of Agreement and/or a purchase order has been issued to a supplier, monitoring supplier performance is necessary to ensure delivery of goods/services is achieved in a satisfactory manner as well as processing of the supplier invoice. Improved supplier/customer relations will be achieved by providing feedback to the supplier of any unsatisfactory aspect of a purchase or performance of a service. To delay the processing of an invoice without notifying the supplier of the reasons could be harmful to other Responsibility Centres who may be enjoying satisfactory service from that supplier.

Essential elements of monitoring supplier performance that should be monitored are:

• Delivery is made on time with relevant documentation
• Goods/services are provided to the required standard
• Note is made of any delays or discrepancies, with reasons
• Corrective action is taken, and
• Invoice received and price is in accordance with the agreed terms of the contract.

In instances where supplier performance is considered to be unsatisfactory, the issue should be discussed with the supplier at the earliest opportunity. Details of the discussion and action requested, together with any response, should be recorded (email is a good medium to achieve this) and filed with other documentation relative to the transaction. When the supplier has failed to rectify the problem within a reasonable time, a formal written complaint should be lodged with the supplier.

Where a Responsibility Centre intends to delay payment of an invoice for any reason contact the supplier direct to resolve the issue. If the issue cannot be resolved, then contact Supply Services.

Staff are encouraged to read and become familiar with the Qld Government's Better Purchasing Guide "Developing and Managing Arrangements with Suppliers", available from Click Here.

As mentioned in the above Better Purchasing Guide, the University has developed its own Service Level Agreement template. Click here.