Contract management is a critical aspect of ensuring that organisation agreements are executed efficiently, with both parties fulfilling their obligations in a timely and cost-effective manner. In the context of government and public sector contracts, the Western Australia (WA) Contract Management Framework provides a structured approach to managing contracts in a transparent and accountable way. This framework helps government organisations ensure value for money, manage risks and maintain compliance with legal and regulatory requirements.
This article explores the principles and key components of the Department of Finance WA Contract Management Framework (WACMF) and how they can be applied to improve contract management practices.
Understanding the WA Contract Management Framework
The Department of Finance WACMF is designed to guide public sector organisations (which is also regularly applied by private sector organisations) in managing contracts effectively throughout their lifecycle. The framework covers all stages of contract management, from planning and procurement through to performance monitoring, contract close out and dispute resolution.
The WACMF is based on several core principles that ensure best practices in the management of contracts. These principles are structured to address key challenges such as risk mitigation, compliance and the achievement of desired outcomes.
Key Principles of the WA Contract Management Framework
Source: Department of Finance – WA Contract Management Framework.
People
Effective contract management starts with the right people. This principle emphasises the importance of allocating personnel with the appropriate skills, knowledge, and experience to manage contracts successfully. Organisations must ensure that staff involved in contract management, whether full-time professionals or those with broader responsibilities, have a clear understanding of their roles and access to ongoing training and professional development. Building internal capability not only supports consistent service delivery but also enhances the agency’s ability to respond to complex commercial environments.
Furthermore, a strategic workforce approach ensures continuity and resilience. Succession planning, knowledge transfer, and mentoring are essential to sustaining contract management capability over time. Organisations can support this by facilitating skills assessments, developing competency frameworks and recommending tailored learning pathways. Investing in people is not just about filling roles, it’s about cultivating contract managers who can anticipate risks, collaborate with suppliers and drive value for money outcomes.
Governance
Governance under the WACMF refers to the structures, systems, and controls that support effective contract oversight and decision making. It ensures accountability, transparency and adherence to procurement and legal frameworks. Sound governance enables clear escalation pathways, appropriate delegation of authority and defined responsibilities, allowing organisations to manage risks proactively and make informed decisions throughout the contract lifecycle.
Organisations can strengthen governance by reviewing internal policies, establishing steering committees, or advising on contract review processes. Strong governance frameworks also foster confidence among stakeholders both internal and external, that contracts will be managed ethically and in alignment with public value. Embedding these governance mechanisms is crucial to ensuring not only compliance but also contract integrity and performance consistency.
Practice
Practice refers to the operational tools, templates, systems, and processes that support contract management on a day-to-day basis. This principle promotes a standardised, repeatable approach that enables organisations to manage diverse contracts effectively and efficiently. Resources such as contract registers, performance dashboards, risk management templates and negotiation guidelines help ensure consistency and reduce reliance on individual expertise.
Organisations can bring value by assessing and optimising these practices, recommending fit-for-purpose solutions aligned to contract complexity and scale. Beyond tools, this principle also encompasses the cultural aspect: fostering a contract management environment that values collaboration, responsiveness and accountability. When good practices are embedded and supported by systems thinking, agencies are better equipped to anticipate issues, resolve disputes early and capture long-term value from supplier relationships.
Strategy
Strategy ensures that contract management is aligned with an organisation’s broader goals and priorities. It reinforces the need for a coordinated, organisational approach where contracts are seen not in isolation, but as instruments to deliver on service delivery outcomes, policy objectives and community expectations. Strategic alignment includes engaging early in procurement planning and maintaining a focus on outcomes throughout the contract lifecycle.
Organisations can assist by mapping contract portfolios to strategic objectives, identifying interdependencies and advising on alignment with enterprise planning frameworks. A strategic approach also supports consistent supplier engagement across government, enabling better leverage, market shaping, and value co-creation. Ultimately, embedding strategy into contract management ensures that every contractual relationship is purposeful, measured and contributing to the public good.
Performance
The performance principle focuses on monitoring, managing, and improving contract outcomes. It involves setting clear performance measures at the outset, tracking delivery against KPIs and using performance data to inform decision making. Effective performance management is proactive, addressing issues early and celebrating success to reinforce positive supplier behaviour and internal capability.
Improving performance management can include designing tailored reporting tools, facilitating supplier relationship management frameworks or conducting independent performance reviews. The goal is to support clients in building a culture of continuous improvement. Contracts should be living documents, not filed away post-award. Performance monitoring enables agile responses, data-informed decisions and ultimately, the delivery of better public services.
Common Pitfalls
There are some common pitfalls in contract management performed by organisations that Moore Australia identifies in our work with our clients. These include the following:
People
- Underestimating the skillset required: Organisations often assign contract management responsibilities to staff without assessing their readiness or providing adequate training. This can lead to poor negotiation, risk oversight and supplier relationship management.
- Lack of role clarity and accountability: When roles and responsibilities are ambiguous, tasks fall through the cracks, especially in shared roles or matrix structures. This reduces ownership and hinders performance monitoring.
Governance
- Inadequate escalation pathways and oversight: Without clear governance structures (e.g. steering committees or delegated authorities), key decisions can be delayed or made without sufficient scrutiny.
- Failure to embed governance early: Governance is often treated as a post-award activity, rather than being built into contract design. This can compromise risk mitigation and diminish alignment with procurement policies.
Practice
- Over-reliance on informal processes: Teams often work around standard tools and templates, especially under time pressure. This leads to inconsistency, data gaps and non-compliance with record-keeping obligations.
- One-size-fits-all approaches: Applying the same level of process to all contracts regardless of value, risk, or complexity, either creates administrative burden or leaves high-risk contracts under-managed.
Strategy
- Lack of alignment with organisational objectives: Contracts are often treated transactionally, without reference to broader policy or service delivery goals. This weakens the strategic value of supplier engagement.
- Fragmented approaches across the organisation: Without a centralised or coordinated contract management strategy, organisations miss opportunities for aggregation, innovation, or lessons learned across contracts.
Performance
- Setting unclear or unenforceable KPIs: Many contracts suffer from vague performance indicators or lack baseline data, making it difficult to hold suppliers accountable or identify underperformance.
- Reactive rather than proactive management: Performance reviews are often ad-hoc or triggered only by problems. Without ongoing tracking and feedback loops, early warning signs go unnoticed, and value erosion occurs.
These pitfalls highlight the importance of integrating all five principles as a cohesive framework rather than treating them as standalone considerations. Consultants can play a key role in helping agencies diagnose these gaps, tailor remediation strategies, and embed continuous improvement into their contract management culture.
Conclusion
The Department of Finance Western Australia Contract Management Framework offers a comprehensive, structured approach to managing contracts. By adhering to its principles, organisations can enhance the effectiveness and efficiency of their contract management practices.
When applied correctly, these principles not only ensure that contracts are executed successfully but also help mitigate risks, maintain accountability and maximise the value delivered to the public.
Moore Australia can assist with the implementation of the WA Contract Management Framework within your organisation.
We can develop or review your Contract Management Framework, policies, procedures, and/or perform a review or audit of this functional area of your organisation to improve efficiency and effectiveness.
Get in touch with your Governance and Risk Advisory team member for more information.
