Contract Management Maturity: Building Stronger Foundations for NSW Councils

four-colors-line.png
Home / News /

Contract Management Maturity: Building Stronger Foundations for NSW Councils

In 2025, the Director and consultants from Strategic Procurement Solutions (SPS) presented Contract Management Maturity roundtable sessions across seven venues in New South Wales. These included Lismore, Forbes, Dubbo, Batemans Bay, Cessnock, and two sessions in Sydney. One Sydney session was held with procurement professionals and the other with engineering professionals. These sessions aimed to raise awareness of the importance of contract management within NSW councils, particularly in response to recent scrutiny from the NSW Audit Office and the recurring issue of budget overruns caused by poor contract oversight. Each session featured interactive polls and case studies to enhance understanding and encourage engagement with the topic.

During the first part of the session, participants explored the differences between project management, procurement, and contract management. The discussion clarified that while procurement focuses on acquiring goods and services, contract management ensures that those agreements are effectively delivered and governed throughout their lifecycle.

The second part of the session focused on optimising contract management. Optimisation involves achieving the best possible outcomes by improving how contracts are developed, executed, and administered. Several lifecycle models were reviewed, all highlighting the importance of effective implementation, active management, and smooth transitions.

SPS also presented its own Contract Management Optimisation Model. This model begins at the commencement of the contract and maintains relationship management as a consistent and ongoing focus. It was emphasised that successful contract management depends on four key areas: governance, administration, visibility, and relationships. These pillars were illustrated through real case studies that demonstrated how weaknesses in any one of these areas can lead to significant project challenges.

The session concluded with practical solutions for councils. A strong contract management framework not only improves operational efficiency but also ensures alignment with audit requirements. A recent NSW Audit Office report revealed that 58 councils either lacked a contract management policy or were using outdated versions, highlighting the need for improvement.

SPS is actively supporting councils by conducting maturity assessments, building internal capability, and developing tailored roadmaps aligned to each council’s strategic objectives and pace of progress.

From creating clear policies and procedures to training teams and reviewing contract clauses, SPS is committed to strengthening contract management practices. Recent projects have included journey mapping and framework development for several councils, ensuring they are better prepared to manage contracts and meet governance standards.

Poll results from the seven networking sessions

A total of 168 respondents participated in three poll questions designed to assess perceptions and priorities related to contract management maturity. Below are the combined results from all sessions.

1. What best describes contract management?

Of the 168 council respondents, the majority (88.10 percent) indicated that contract management is best described as “managing contractors effectively to achieve outcomes”. A smaller proportion (6.55 percent) said it is primarily about “ensuring compliance with legislation”.

2. Where do you sit in contract management maturity?

From 158 responses, 39.24 percent felt their contract management approach was structured, while 34.81 percent said they had a basic structure in place.

3. What solutions would best assist your journey to contract management maturity?

A total of 147 responses were received for this question. The most commonly selected option was training and upskilling staff in contract management, chosen by 21 percent of participants. This was followed by contract management performance and reporting at 16 percent, and contract management basics at 15.65 percent.

Looking Ahead

The insights gathered from the Contract Management Maturity sessions clearly demonstrate the growing need for councils to improve their contract management capabilities. A majority of respondents identified training, performance reporting, and foundational knowledge as top priorities. SPS remains committed to supporting councils on their journey toward improved maturity in contract management.

As a next step, SPS is working to develop a range of targeted solutions. These will include online training modules, specialised advisory services, tailored workshops, and practical tools and templates designed to meet the specific needs of councils across New South Wales.

By continuing to collaborate closely with local government teams, SPS aims to build stronger and more resilient contract management frameworks that will lead to better outcomes for the communities they serve.

Recent Articles

News from LGP

Keeping Local Government Connected

four-colors-line.png