During the post-award phase, it is important to ensure that contract conditions and terms are met, but it is also critical to take a closer look for items such as unrecorded liabilities, under-reported revenue or overpayments. If these items are overlooked, margin may be negatively impacted. A contract compliance audit will often commence with an opportunity review to identify the highest risk areas. Having a dedicated contract compliance (and\/or governance) program in place has been shown to result in a typical recovery of 2-4% and sometimes as high as 20%.<\/p>\n\n\n\n
Current thinking about contract management in complex relationships is shifting from a compliance \u201cmanagement\u201d to a \u201cgovernance\u201d perspective, with the focus on creating a governance structure in which the parties have a vested interest in managing what are often highly complex contractual arrangements in a more collaborative, aligned, \ufb02exible, and credible way. In 1979, Nobel laureate Oliver Williamson wrote that the governance structure is the \u201cframework within which the integrity of a transaction is decided.\u201d He further added that \u201cbecause contracts are varied and complex, governance structures vary with the nature of the transaction.\u201d.<\/p>\n\n\n\n
A collaborative governance framework has four components:<\/p>\n\n\n\n
During the post-award phase, it is important to ensure that contract conditions and terms are met, but it is also critical to take a closer look for items such as unrecorded liabilities, under-reported revenue or overpayments. If these items are overlooked, margin may be negatively impacted. A contract compliance audit will often commence with an…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-101705","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"\n