4.6 Contract Management

4.6.1. Contract Management

(a) The Head of Department must ensure that all Contracts with a Total Value of £25,000 or more are allocated to a Contract Manager. The Contract Manager will be responsible for ensuring that the Contract is performed as agreed in the Contract documentation, including the Specification and the terms and conditions of Contract, and that the supplier meets any agreed Key Performance Indicators and maintains the required insurance cover levels.

(b) The Contract Manager must undertake Contract review meetings with the supplier at a frequency commensurate with the value of the Contract and the Risk that it presents. He will raise and seek to resolve any Contract performance issues with the supplier, escalating any persistent or material performance issues to the appropriate Category Manager.

(c) The Contract Manager must know the date on which the Contract for which he is responsible is due to expire and must establish the ongoing requirement for such a Contract following its expiry. This must be done a sufficient period before the Contract expiry date so as to allow time for a Procurement Exercise to be undertaken for any replacement Contract.

4.6.2. Contract Variations

(a) Prior to any variation being agreed which would result in an increase in the Total Value of the Contract the Procurer must ensure that sufficient additional budget provision has been approved by the budget holder.

(b) If the Total Value of the Contract is under £50,000, including the planned variation, the Head of Department in consultation with the appropriate Category Manager shall be authorised to vary the Contract. This authorisation must be issued before the work is carried out, or in the case of an emergency, immediately thereafter.

(c) In the case of a Contract with a Total Value of £50,000 or more:

(i) for any variation(s) that would increase or decrease the Total Value of the Contract by 10% or more, the Head of Department in consultation with the appropriate Category Manager must gain the prior approval of the Head of Procurement. This authorisation must be issued before the work is carried out, or in the case of an emergency, immediately thereafter;

(ii) for any variation(s) that would increase or decrease the Total Value of the Contract by less than 10% the Head of Department in consultation with the appropriate Category Manager shall be authorised to vary the Contract. This authorisation must be issued before the work is carried out, or in the case of an emergency, immediately thereafter.

(d) For a Contract to be varied there must be provision for the variation within its original scope. Otherwise it must have been unforeseen at the time of tendering or there are insurmountable economic or technical barriers or significant inconvenience, were there to be a change of supplier. In any event the variation must not alter the overall nature of the Contract and not exceed 50% of the original Contract value.

4.6.3. Contract Extensions

(a) If the Total Value of a Contract, including the planned extension, is under £50,000 and the Contract provides for the extension the Head of Department shall be authorised to extend the Contract.

(b) If the Total Value of a Contract, including the planned extension, is £50,000 or more and the Contract provides for the extension the Head of Department shall be authorised to extend the Contract in consultation with the Category Manager.

(c) If the Total Value of a Contract, including the planned extension, is under £50,000 and the Contract does not provide for the extension the Head of Department, in consultation with the Procurer and appropriate Category Manager, shall be authorised to extend the Contract on a one-off basis.

(d) If the Total Value of a Contract, including the planned extension, is £50,000 or more and the Contract does not provide for the extension the Head of Department must gain the prior approval of the Head of Procurement and the Registrar and Chief Operating Officer to extend the Contract.

(e) In the case of Contracts tendered in accordance with the EU Directive any extension will only be permissible if this was properly described in the original OJEU notice, where applicable.

4.6.4. Novation of Existing Contracts

The novation of a Contract to a new Person requires the prior written approval of the Head of Procurement in consultation with the Legal Office.

4.6.5. Early Termination of Contracts

Unless a provision for early termination is clearly stated in the Contract, Procurers shall seek advice from the appropriate Category Manager where it is intended to terminate a Contract early. Where the Total Value of the Contract is £50,000 or more the prior written approval of the Head of Procurement shall also be obtained.

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