The CATS CM® methodology is based on 4 pillars, of which I already gave a brief explanation in the introduction to CATS CM®. The first pillar distinguishes between the ‘Work To Be Done’ and ‘All Other Contract Matter’. We make this distinction in order to divide the contract into two areas that both require their own areas of focus.
When considering contract management, the content of every contract can be divided into two parts: The Work To Be Done (WTBD) and All Other Contract Matter (AOCM). This applies to both the client and the supplier. The distinction between these two components forms the foundation for the
CATS CM® methodology for defining and identifying the different tasks and responsibilities during the execution of a contract and allocating them to the different roles.
Work To Be Done (WTBD)
The Work To Be Done, as the name already implies, concerns the agreements related to the performance that needs to be delivered. It concerns the form in which this is to be delivered, the specifications it must comply with, and how they will be measured. It is important to realize that the supplier is not the only party who needs to deliver. The client needs to meet agreed performance objectives as well. Part of the WTBD includes the things the client should arrange so that the supplier can meet the performance obligation.
All Other Contract Matter (AOCM)
Every condition other than the Work To Be Done falls under ‘All Other Contract Matter.’ This certainly includes compensation for the contract performance, while agreements about how to handle when the WTBD is not delivered according to the agreement also become part of AOCM.
Why this distinction?
The distinction between the WTBD and AOCM forms the foundation for the distinctive roles that the contract manager and the realization and verification manager need to fulfill. These roles, each with their own focal points, are part of the second pillar of CATS CM: the roles that are created for the contract and which must be established within the organization to ensure successful contract performance.
This is the ninth blog of the series ‘Contract Management with CATS CM® in a nutshell’, in which we guide you through an overview of our vision and methodology. Do you have any questions for Linda Tonkes and Gert-Jan Vlasveld, the authors of the book Contract Management with CATS CM® version 4? Then please send an email to email@example.com!