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Contract Management Policy

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Section 1 - Purpose

(1) This policy aims to ensure that:

  1. RMIT manages the risk associated with Contracts by providing clear direction to staff responsible for establishing and managing Contracts with third parties; and
  2. that Obligations under Contracts are performed

(2) This policy excludes employment contracts and non-binding Memoranda of Understanding (MoU).

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Section 2 - Scope

(3) This policy applies across RMIT and its controlled entities unless otherwise stated.

(4) Compliance with country-specific legislative requirements must be obeyed.

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Section 3 - Policy

Appointment of a Contract Manager

(5) A Contract Manager must be appointed for each Contract to be entered into by RMIT.

(6) The Contract Manager’s responsibilities are outlined in the applicable Contract management process and include:

  1. Negotiation of the Contract;
  2. Ensuring that Contracts are compliant with legislative obligations and RMIT Policy;
  3. Monitoring performance of the Contract by both RMIT and the other party(ies) to the Contract; and
  4. Management of Contract renewal, termination or expiry and dispute resolution (including breaches)
  5. Appointment of a Contract Manager must follow the applicable Contract management process.

Preparing and Negotiating the Contract

(7) All RMIT contracts must be in writing.

(8) A financial assessment of the contractual party must be conducted prior to entering into negotiations process in accordance with applicable due diligence and/or financial assessment processes.

(9) The Contract Manager must seek guidance and assistance from the appropriate Responsible Area, where appropriate, as listed below:

  1. Legal Services Group;
  2. Procurement (only for acquisitions of goods or services by RMIT); and
  3. Financial Services

Signing and Storing the Contract

(10) Only staff with the requisite authority under the Delegations of Authority may sign and execute Contracts on behalf of RMIT.

(11) All Contracts must be entered into the applicable authorised RMIT Contract Register. The responsibility for ensuring the contract information is entered into the system is as per the applicable Contract management process.

(12) All Contracts and relevant documentation must be filed and securely stored in accordance with the Information Governance Policy.

(13) Systems of effective monitoring and review of the Contract are to be documented and maintained in accordance with the applicable Contract management process.

Related Policy and Processes

(14) All Contracts must be managed in accordance with the applicable Contract management processes.

(15) Contracts under which RMIT provides services to third parties must comply with the requirements of the Revenue and Expenses Procedure.

(16) Contracts for procurement by RMIT of goods or services must comply with the applicable Procurement process.

(17) Conflicts of interest which may arise in the contracting process must be managed in accordance with the Conflict of interest Policy.

(18) Contracts and MoU’s between RMIT and international institutions must follow the applicable International partnership agreement processes (under development).

(19) Arrangements with independent contractors must follow the applicable Engagement of consultant/contractor guideline.

(20) Where a contract involves a tender for the acquisition of goods or services by RMIT, the applicable RMIT procurement process must be followed.

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Section 4 - Procedures and Resources

(21) Refer to the following documents which are established in accordance with this Policy:

  1. Contract Management Process
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Section 5 - Definitions

Contract: An agreement that creates legally binding obligations and includes examples such as: agreements, exchange of letters, heads of agreement, binding memorandum of understanding, response to tender, grant application, trust deed 
Contract Register: The centralised repositories respectively holding all contracts of each RMIT entity.