Function of contract manager 1 Function description

Many of the interviewees found it difficult to describe their function. The answers given were diverse but some common aspects of the function of the contract manager were brought forward. Obviously, the function was often described as managing contracts or contractual agreements. This was explained as ensuring contract compliance, the contracts running properly or realizing maximum utilisation of the contract value.

The aspects of the function of the contract managers which were mostly mentioned during the interview are illustrated in Table 2:

Aspect Explanation

Advising, guiding, coordinating, signalling

These verbs were frequently mentioned by respondents when

describing the function of a contract manager. The contract manager advices, guides and signals the internal organisation about a contract. The contract manager is mentioned to have a director’s role in the execution of the contract but does not actually execute the decisions within the contract. It is questionable whether a contract manager can be measured or his or her added value can be assessed based on the execution of contracts if he or she is only guiding and advising. These aspects did not come forward in the literature review about the function of the contract manager. Nevertheless, advising and

supporting decision-making of purchasing was called as an advantage of contract management (Covalis, 2014).

Implementation of the contract

The implementation of the contract was mentioned to be an important aspect of the function of a contract manager.

This aspect was not mentioned in the literature review.

Realisation of strategy

The contract manager has an important role in the realising the (purchasing) strategy of the contract.

This aspect did not appear in the literature review.

Relationship with supplier

About one third of the respondents included the relational aspect of the function of the contract manager, the contact of the contract manager

with the supplier and the importance of the relationship with the supplier. This was also named supplier management.

Some respondents regarded supplier management as part of the function of the contract manger, while others regard it as a separate function of a supplier manager or the organisation is working towards setting it up as a separate function.

In the theoretical framework of this master thesis supplier management was separated from the definition of contract management. Based on these results and what has been found in literature, supplier

management often seems to be integrated in the function of the contract manager. Additionally, the relationship with the supplier is illustrated in the racing car model as one of the wheels of the racing car, in other words supportive to the purchasing process (Veek & Gunning, 1993).

Risk A few times risk management and risk analysis was mentioned in the function description.

Risk management was already mentioned in the literature review as an advantage of contract management and to be missing in the list of tasks and responsibilities (IACCM, 2013; Alting et al., 2014; Covalis, 2014; Van Beckum & Vlasveld, 2014; VNG, 2014). The mentioning of risk management in both literature and by interviewers, implies that it is an important aspect in the function of the contract manager.

Internal and external stakeholders

The contract manager has to take into account both the internal and external stakeholders and acts as a mediator between them. Some descriptions focused more on ensuring that the performance of the supplier is in compliance with the contract, while excluding the performance and compliance of the internal organisation. Whereas a few other descriptions did explicitly highlight the importance of the internal organisation in the execution of the contract.

The relationship with the supplier, the external stakeholder and the internal organisation were also mentioned in the literature review (Covalis, 2014; VNG, 2014). However, they were not referred to as ‘stakeholders’.

Central point of contact

The role of the contract manager was described as a central point of contact, both internally and externally.

This aspect was not named in the literature review. Moreover, this can be linked to the racing car model discussed in the theoretical

framework of this master thesis, in which the purchasing process is supported by both the internal and external partner (Veeke & Gunning, 1993). The contract manager is also supported by both the internal and external partner and his or her added value may depend on them.

Legitimacy and effectiveness

A few times the terms legitimacy and effectiveness were mentioned in the descriptions. Particularly in the public sector legality and

effectiveness play an important role and contract managers are guarding this. Public organisations are spending money from citizens and should take care and accountability in how they are spending this money and comply with regulations. The added value of contract manager in the public sector may be influenced by the role of the contract manager in guarding this.

This aspect did not come forward in the literature review but is important in the context of the public sector.

Table 2 Aspects in function description of contract manager

A difference in the description of roles during the interviews could be found in whether contract managers were involved and collaborating in the purchasing process of a contract so before the contract was being signed. If a contract manager was involved in the purchasing process, the function was additionally described as collecting the needs of the internal

organisation, preparing the quotation process, providing input for new contracts and ensuring the establishment of good contracts. Even though according to Van der Valk & Rozemeijer (2009) contract management takes places in the second half of the purchasing process, these results of the interviews show that in some cases the contract manager already plays a role and is involved in the first half of the process. This also corresponds to explanation of Schurgers (2017) about contract management being cyclical. The influence and the input of the contract manager on the contract formation may influence the added value of the contract manager. This topic has been neglected in the literature review.

Both the literature and the results of the interviews show diversity in the contract manager function. The results show some important aspects of the function of the contract manager which helps in understanding the function.

5.1.2. Tasks of contract manager

The interviewees were firstly asked about what the tasks of a contract manager are. These tasks were compared to the checklist of tasks found of Vereniging van Nederlandse

Gemeenten (2014) and discussed with them. At first the results to the checklist of tasks will be presented and after that the additional tasks mentioned during the interviews will be discussed. 1. Administration of contracts About half respondents 13 of 25 respondents

Yes, they do execute this task.

One contract manager conducts this task together with a purchaser. One contract manager conducts this task with project control.

Other half of respondents 12 of 25 respondents

No, they do not execute this task.

Some respondents added that the task is conducted by: administrative worker, the departments working with the contracts, contract

administration, purchasing or separate team.

In one case the contract manager is not executing the task but is providing input. One respondent answered that he conducts this task sometimes for some contracts.

Explanation In some cases the contract managers answered that they conduct the task but the archive part of administrating the contract is conducted by a secretary or administrative worker.

2. Signing of contracts