In the merciless arena of tenders, where every participant tries to assemble its best team of gladiators to build the most aggressive bid, the contract manager is often relegated to the rank of spectator, confined to the wings of project delivery.
This somewhat reductive view tends to caricature them as a technician of contract clauses, a master of the signature folder, devoid of any commercial instinct. Yet this perception overlooks a fundamental truth: far from being mere referees in disputes or guardians of the administrative temple, the growing place of the contract in commercial relationships has turned the contract manager into a genuine modern-day strategist.
In this article we explore how, in the grand theatre of tenders, the contract manager (far more than a mere executant) can prove to be the director of a play in which the competitiveness and profitability of the project take the leading role. Highlighting the need to redefine the often underestimated role of the contract manager, this article sets out to lift the veil on the strategic contribution they can make from the moment the curtain rises on the tender.
A. Tenders: the starting point for many projects
In the business world, tenders are often the starting line for a host of ambitious projects.
These processes, rigorous and sometimes complex as they are, follow a well-defined lifecycle which, by analogy, resembles that of a deal or a project. That cycle usually begins with a request for proposal (RFP) or a tender, and unfolds across several crucial stages.
An analogy can quickly be drawn with the contract lifecycle, and with a first contract initiation stage which, in a tender, begins as soon as an RFP or a DCE (the French tender documentation pack) is received.
B. The added value of the contract manager during the tender phase
Let us get straight to the point: involving the contract manager from the tender phase is a considerable asset!
Their presence brings operational contract analysis expertise into this first critical phase, and in particular brings the early identification of risks and opportunities into the discussion.
Bringing contract management expertise in from the tender phase ensures a thorough understanding of what is at stake in the project, making it possible to define clearly the priorities and the actions needed for effective delivery. Through this approach, the contract manager contributes to:
- improving the competitiveness of the bid, thanks to a sharper analysis of risks and opportunities than legal or finance teams can offer, and to
- the profitability of the project, by identifying risk items and potential opportunities from the outset, making it possible to structure a bid around a suitable organisation and suitable processes.
Close collaboration with the bid manager also makes a winning pair, combining complementary expertise for the benefit of projects. This synergy between the contract manager’s operational skills and the bid manager’s strategic capabilities forges a solid team, able to navigate the challenges of tenders effectively.
C. Towards greater involvement of contract managers in tenders?
Although the benefits of embedding contract management from the upstream phases of projects are undeniable, putting it into practice remains complex, and in some companies is little more than wishful thinking.
This difficulty in embedding contract management in the upstream phases of a company’s operating cycle is rooted in obstacles that are both cultural and organisational.
Culturally, contract management is often seen as being at odds with commercial priorities, creating a gap between business objectives and contractual practice. Organisationally, the still marginal position of the contract manager and their chronic understaffing within companies limit their ability to influence the preliminary phases of projects in any meaningful way.
To overcome these challenges, it is crucial that contract managers become their own advocates, demonstrating their understanding of, and connection with, the business. The challenge lies in growing these teams and evidencing the return on investment of their involvement, in order to promote the rise of this function, particularly in the upstream phases of projects.
Conclusion
Involving contract managers in tenders is a strategic lever for companies, allowing them to increase the competitiveness and profitability of projects.
Despite the cultural and organisational challenges, it is imperative to recognise the added value these professionals bring from the earliest stages of a tender. By adopting a proactive stance and demonstrating the positive impact of their work, contract managers can not only help transform corporate practice but also pave the way for greater boldness in their approach.
Contract management practice must not be limited to the delivery phase; it must extend across the entire project lifecycle, thereby strengthening contract management’s position as a strategic partner essential to commercial success.