MCP’s Contract Review / Development service support the maintenance function within any organisation. They will usually use contracts and contractors extensively; their use can range from annually servicing of key equipment, the supply of additional manpower to the outsourcing of some or all of the maintenance function.
In all cases the objective of the contractor has to be:
“To deliver a consistently and repeatable customer experience across all aspects of the service and across every stage of the relationship (e.g. awareness, purchase, usage, and support) that drives loyalty, growth and competitive advantage.”
The type of contract and the management measures applied must be appropriate. The wrong type of contract can impose unnecessary administrative burdens, impose punitive penalty clauses and cause an acrimonious relationship between the contractor and client.
MCP has extensive experience in Contract Review / Development services. By reviewing and establishing contracts we can ensure your contracts are the right type and contain the correct balance of risk and reward.
Contracts fall broadly into five groups:
- Input based
- Output based
- Performance/ Partnering
- Managing contractor
- Bundled services
It is essential that the correct contract type is applied when the contract is awarded. We will review your contracted services (existing or proposed) and ensure the correct contract type is applied). Each contract type requires different elements – if you cannot define the elements appropriate to the contract type it is likely that you are trying to apply the wrong contract. For example, if the scope of work is unclear and you are trying to apply a contract with a fixed price and stringent penalty clauses, then this is a recipe for disaster.
Almost all contracts will contain some form of Service Level Agreement (SLA), this must be:
“a negotiated agreement designed to create a common understanding about services, priorities and responsibilities”
“a method to apportion blame” or “a way to unfairly penalize”
SLAs will be supported by Key Performance Indicators (KPIs), these are used to monitor contract delivery and are the base for contract reviews. We will not only ensure that your contracts are the right type but also that they contain the appropriate SLAs and KPIs enabling effective management and service delivery
The correct contact is essential if contracted services are to deliver their predicted benefits. At MCP, we are experienced in reviewing and establishing contracts that enable you and your contracting partner to have a harmonious and mutually rewarding working relationship.