Contract changes (change control mechanism)

Purpose:

Contract changes ensure that the contract's scope and conditions maintain alignment over time with, the needs and objectives of the business, the required relationship with the provider, the regulatory environment and the services, which the department actually wants to be delivered. 

Fitness for purpose checklist:

• Is the change really necessary?
• Has the change been approved by all relevant parties?
• Does the change deliver benefit or value?
• Has its cost been estimated?
• Have all necessary discussions between the relevant parties leading to this change been successfully concluded and documented?
• Have all the potential impacts and consequences of the change on the Client side been thought through, documented and approved?
• Have all the potential impacts and consequences of the change on the Provider side have been thought through, documented and approved?
• Has the Agreement Change Procedure within the contract been used correctly and efficiently?
• Has the implementation date for this change been established and agreed?
• What is the impact of this change on any other contract or licence that the department may hold?
• Does this change align with current business / marketing / financial objectives and plans? 

Suggested content:

To follow

Source information:

OGC Model Agreements - Contract Change Procedure.

Notes:
A change to the contract can cover anything (and /or everything) within the scope of that contract. Not just legal requirements, but payment terms, service levels, new / altered / deleted service elements, duration, termination, timetable issues, changes to contact details or identified personnel.

Changes are normally handled by the respective contract managers, seeking advice and approval as necessary.

Contract managers should be proactive in managing changes, such that foreseeable changes (e.g. move to Euro) are dealt with before they become a problem. Also by looking for opportunities to "improve" the contract, although what is considered "an improvement" will depend on which party is viewing it.

Knowledge of the contract is the key to identifying improvements, for example by remedying a known contract deficiency, or by looking to the future of the departmental organisation, and seeing how the contract (in a changed state) may help towards bringing about the future "vision".

Changes should always be expressed in writing and drafted in clear, precise and unambiguous terms.

For any change, the totality of the text to define the change, including every single clause, schedule and cross reference, must be drafted quality assured and agreed, before the change is incorporated into the contract, and in any event, well before the change outcome becomes effective.

An eye for detail is paramount.

Further information:

See the briefing on Changing requirements

See also the senior management briefing: How major service contracts can go wrong

ITIL Service Delivery