The purpose of this Contract Management Handbook (Handbook) is to offer contract managers, purchasing personnel and other administrators at University of Texas institutions recommendations on documenting existing contract management processes and practices in connection with the procurement of goods/services. This Handbook does not govern real estate transaction contracts (even if the transaction is a lease under which an Institution provides services in exchange for compensation), sponsorship agreements under which Institutions receive compensation is exchange for recognition of the sponsor, sponsored research contracts or other intellectual property agreements where Institutions convey an interest in intellectual property. Construction contracts are governed by separate statutory requirements and are also not addressed in this Handbook. However, this Handbook may provide helpful information useful in connection with contracts that are not governed by the Handbook.
Use of this Handbook does not relieve Institutions and contractors of their responsibility to comply with Applicable Laws and University Rules related to specific programs and funding sources.
For purposes of this Handbook, contract management includes the coordination and administration of four core processes: • Planning; • Procurement of goods or services (including complying with HUB laws and policies); • Contract Formation (including scope of work, specification of contract price or rate and other relevant terms and conditions); and • ContractAdministration.
The nature and level of risk associated with each of these contract management elements vary depending on the type of contract and the business relationship between the Institution and contractor. It is the responsibility of the chief business officer of each Institution to assign responsibilities, assure appropriate training and oversight, and monitor the processes so that each procurement achieves best value for the Institution. Fully implemented contract management requires coordinating and administering the four core processes.
However, contract management also involves coordination of a variety of distinct disciplines and roles, including: • Executive Management; • Project Management; • Planning; • Program Staff (subject matter experts and monitors); • ContractorInteraction; • Purchasers; • Accounting and Budget; • Legal; • Audit; and • Quality Control/Assurance
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