Management of Contract Extensions and Variations

Report 6: 8 May, 2018

Background

Western Australian universities and TAFEs spend hundreds of millions of dollars annually on purchasing a wide range of goods and services. A significant number of these purchases are made through … Read more →

What we did

The objective of this audit was to assess whether entities adequately managed extensions and variations to their contracts. The audit also assessed whether they maintained good records of contracts. We … Read more →

Conclusion

All 7 entities had satisfactory controls over contract variations. However, management of contract extensions, including the review of contractor performance, needed to be improved at most entities. In addition, the … Read more →

What did we find?

Policies for contract extensions and variations need improvement Comprehensive procurement policies and procedures provide clear guidance to staff, help ensure that better practices are consistently followed by all staff and … Read more →

Recommendations

1.    Entities should: a.    ensure their procurement policies and procedures include comprehensive guidance to staff on recording of contract information and management of contract extensions and variations, so that procurement … Read more →

Management responses

Entities in our sample generally accepted the recommendations and confirmed that where relevant, they have either amended policies and administrative systems or will improve practices.

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