Mastering best practice contract management: insights from our recent masterclass

Contract management plays a critical role in ensuring that suppliers and service providers deliver on their promises, maintain your organisation’s integrity, and protect its reputation. But what does effective contract management really look like? At our recent Best Practice Contract Management masterclass, we explored these questions in depth, focusing on strategies to maximise value and mitigate risk.

The session featured a keynote address from Nadine Lennie (Chair of the Victorian Government Purchasing Board and CFO of Transgrid) and a panel discussion with industry experts who shared their experiences navigating the complexities of contract management. Attendees also participated in a hands-on case study designed to simulate real-world challenges within a Government agency. 

Key takeaways from the masterclass

Getting the specifications right from the start
The session highlighted the importance of setting clear specifications up front to avoid budget blowouts and delays. She emphasised that contract management begins long before a contract is signed—with clear project management and detailed scope summaries to ensure all stakeholders are aligned.  

Effective communication is the cornerstone for success
Clear and consistent communication ensures all parties understand their roles, responsibilities, and the expectations set forth in the contract. It helps identify and resolve issues early, prevent misunderstandings, and maintain strong relationships between all stakeholders. Good communication keeps everyone aligned on project goals and timelines, while also providing a framework for accountability. 

The impact of AI on procurement
Digitalisation and AI are rapidly changing how procurement agreements are managed. The risks associated with AI in procurement and how it can be leveraged to synthesise data quickly, write comprehensive contract scopes, and ensure that you’re asking the right questions. Articulate clearly what you want from a supplier and manage expectations by being precise about your needs and goals. 

Expert panel: navigating economic and industry challenges 

In today’s economically constrained environment, balancing quality and cost is more challenging than ever. The panel, featuring Helen Vaughan, Hayley Baxter, Nadine Lennie, Adrian Gibby, and Saz Asifi, discussed how contract management is being affected by fiscal pressures and the evolving marketplace.  

• Helen Vaughan (Victorian Government Purchasing Board) stressed that contract success isn’t just about meeting the bottom line. It’s about understanding what you’re trying to achieve as an organisation and ensuring suppliers align with those goals. 

• Hayley Baxter (Executive Director, Government Procurement) emphasised that “what gets measured, gets done.” Effective contract management requires rigorous monitoring of key metrics to hold suppliers accountable for delivering what’s agreed upon in the contract. 

• Adrian Gibby (KPMG) discussed the importance of open, honest communication and good relationships in contract management, “Trust…but verify”. 

• Nadine Lennie shared the analogy of being a good people leader and how setting clear direction and instructions, developing trust and respectful communication, can be used as a framework for managing relationships with suppliers.

Final thoughts: becoming a great contract manager 

The masterclass wrapped with a reminder to become a great contract manager; you first have to understand what you’re buying. Take the time to define your needs clearly, think strategically about your procurement process, and apply the same leadership skills you use with your team to your vendors. When managed well, contracts are more than just formal agreements—they’re partnerships that can drive value for both parties. Mastering contract management is more important than ever in an ever-changing economic and technological landscape.