How to draw up an effective contract for a contract manager

The difference between an effective contract and an employment contract

In 2012, the President of the Russian Federation ordered by decree No. 597 to approve a program that will help optimize the algorithm for remuneration of employees of budgetary organizations. In furtherance of the order, the government of the Russian Federation developed and adopted, by order No. 2190 dated November 26, 2012, a program for improving payment systems. The goal of the program is to increase the efficiency of the contract manager and other employees, and to encourage public sector employees to improve the quality of services through the introduction of an effective contract.

The use of the document assumes that within the framework of employment contracts there is a qualitative improvement in labor relations. For each employee the following is specified:

• labor function;
• performance criteria;
• amount of remuneration;
• amount of incentives based on collective results at work.

In accordance with the Labor Code of the Russian Federation, an employment contract is the only form of establishing labor relations, therefore the entry into force of the document involves the optimization of labor relations within the framework of labor agreements.

A comparison of the two options looks like this:

Thus, the differences are insignificant: the contract specifies specific criteria for assessing the performance of the contract manager, which determine the amount of incentive payments.

ConsultantPlus experts looked at how to switch to an effective contract. Use these instructions for free.

Effective contracts in 2022

The concept of an effective contract appeared in the everyday life of government agencies six years ago along with the Order of the Government of the Russian Federation dated November 26, 2012 No. 2190-r, which adopted a program for the gradual improvement of the remuneration system in state (municipal) institutions for 2012–2018.
The last, III stage lasted from 2016 to 2022. Employers should have concluded effective contracts with all employees of government organizations by 2022, and contract managers are no exception. The conclusion of employment contracts with employees that will ensure effective work and establish the procedure for determining incentive payments and social payments to the contract manager has already been completed. Effective contracts were introduced to increase work productivity, define work tasks and performance evaluation criteria, and establish a clear and understandable incentive system. In practice, the system of effective contracts does not always work as planned in the improvement program, and the conclusion of the EC is of a formal nature. There is a lack of transparency in the calculation of incentive payments, while when planning effective agreements, it was said about the need to create an incentive system that is understandable to both the employer and the employee. Evaluation indicators have not been worked out, the criteria are not specified for the sectoral and organizational characteristics of institutions. In addition, calculations of labor remuneration taking into account such performance criteria are not automated. It is problematic for accountants to explain to employees the procedure for calculating payments. There are no programs specialized for such contracts: specialists have to add working software manually.

Contract managers: an effective contract or employment agreement

The program, which established an algorithm for improving the remuneration system in government organizations, was in effect from 2012 to 2018. It determined that the aforementioned agreements should be concluded with all employees of government agencies by the end of 2022. Contract managers are no exception. This means that the document is mandatory for this category of employees.

Federal Law No. 44-FZ dated 04/05/2013 provides for the creation of contract services or the appointment of contract managers on the basis of all government agencies. A new position of contract manager has appeared in the system of government institutions with special functionality, a requirement for high-level professional training and serious responsibility.

The contract manager has many responsibilities, including:

• development of procurement plans;
• determining the contract price;
• posting messages about purchases;
• carrying out procedures;
• development of claim materials.

The scope of liability is established by different sections of the Code of Administrative Offenses of the Russian Federation (Articles 7.29 – 7.32, 7.32.5, Parts 7 and 7.1 of Article 19.5, Article 19.7.2) and the Criminal Code of the Russian Federation (Article 200.4).

Considering the significant amounts of fines, reaching 50,000 rubles, the problem of high-quality performance of functions becomes urgent. If the only hope is for punishment, the result will be staff turnover.

The organization should establish a system of monetary incentives for the contract manager as an alternative to punitive measures. The job description helps determine what incentive criteria for the contract manager to include in the document.

The Ministry of Labor, by order No. 167n dated April 26, 2013, established the types of payments (incentive and compensation):

• for intensity and high results;
• for quality;
• for continuous work experience, length of service;
• bonuses based on performance results;
• for hard work, with harmful and (or) dangerous and other special working conditions;
• for work in special climatic conditions;
• for conditions deviating from normal;
• for working with state secrets.

The inclusion of these financial conditions in the contract gives the manager an understanding that high-quality work entails significant material advantages.

As a result, an effective contract with a contract manager, containing clear indicators of the quality of work of the contract manager, allows:

• increase the prestige of the position;
• pay for work in accordance with the quality of public services;
• improve qualifications;
• improve the quality of purchased goods, works, services;
• develop a clear payment mechanism for work.

Do employers clarify whether the contract manager is working under a GPC agreement or under an effective contract? The Ministry of Finance of the Russian Federation in letter dated 06/09/2017 No. 24-03-08/36084 explained: Federal Law No. 44 defines the functions and powers of the customer in the procurement process. These functions are performed on behalf of the customer by an official who works on the basis of the customer’s local administrative documents. At the same time, the law on the contract system did not decipher the concept of “official”. As a result, the customer independently establishes the distribution of functionality, powers, establishes the duties of the position and the responsibility of the performer.

What to include in an effective contract with a teacher

It is recommended to take into account regulations (and, if not available, develop them) that define:

• payment system (including salaries (official salaries), wage rates, additional payments, allowances);
• labor standardization system;
• working conditions based on the results of a special assessment of working conditions;
• working hours and rest hours for teachers;
• staffing schedule of the educational institution;
• conditions that determine, in necessary cases, the nature of the work (mobile, traveling, on the road).

The main challenge in implementation relates to the development of performance measures. They must be carefully thought out and tested. It is necessary to build a unified system of requirements for employees, arising from the requirements for the activities of the institution itself, provided for in state and municipal legal documents. Without fulfilling this condition, an effective contract will simply remain a more voluminous employment contract and will not ensure its effectiveness.

11.28.2013 The Ministry of Education and Science of the Russian Federation has developed several methodological recommendations on the implementation of proven models of effective contracts in the system of vocational training and secondary vocational education and on incentives for heads of educational organizations (that is, with teachers). They contain a list of performance indicators for teachers and industrial training masters of professional educational organizations, as well as a list of performance indicators for managers of professional educational organizations.

Also, important indicators of the effectiveness of teachers’ activities, which should be used in the development, are established in Order No. 722-r dated April 30, 2014.

How to create and implement

An effective contract for a contract manager has features regarding payment for work and description of responsibilities.

When drawing up an effective contract, the following positions should be clarified and specified for each employee:

1. Labor function. Specify the responsibilities of the position and types of work.
2. Indicators and criteria for assessing the effectiveness of activities. Set based on the tasks assigned to the employee.
3. Amount of salary and incentives. Establish specific criteria for incentive payments to procurement specialists and assessments of his activities that do not allow for double interpretation.

To put the contract into effect:

1. Create a working group in the institution (administration, employees, trade union).
2. Develop documents that define criteria for assessing employee performance and the content of functionality.
3. Change the PVTR, provisions for payment, bonuses, and other payments.
4. Develop a contract template.
5. Conclude a contract with a newly hired manager or an additional agreement for a contract manager when drawing up a document with an existing employee.

We prepare documents

After your institution has developed and approved performance indicators and forms of contracts with employees, you should issue an order to transfer to EC. Be sure to refer to Order 2190-r, because it is precisely those “other reasons” that are mentioned in Part 1 of Art. 74 Labor Code of the Russian Federation.

Sample order to switch to an effective contract:

If the institution has already introduced indicators in the corresponding regulation on EC, the order must refer to this provision.

Now, based on the order, we notify employees.

Sample notification of the introduction of an effective contract:

Order

Responsibilities

Federal Law No. 44-FZ dated 04/05/2020 determines the personal responsibility of the contract manager for compliance with procurement legislation and compliance with performance indicators.

The functions of a contract manager are varied and include the following tasks:

• develop a procurement plan;
• make adjustments to it;
• post the plan on a single information resource;
• develop a schedule and change it;
• determine the initial maximum contract price;
• post procurement notices and documentation on a common platform;
• carry out the procurement procedure;
• prepare claim materials;
• conduct consultations if necessary.

Performance indicators

The main activities carried out by cultural institutions and aimed at improving the remuneration system include the preparation of proposals and approval of employee performance indicators and the conclusion of additional agreements to employment contracts in connection with the introduction of an effective contract or new employment contracts with newly hired employees.

By virtue of the Letter dated October 31, 2012, the criteria, indicators and frequency of assessing the performance of employees of institutions are established by local regulatory legal acts of institutions, collective agreements, agreements, employment contracts and are determined taking into account the achievement of goals and performance indicators of the institution.

The frequency of assessing the effectiveness of the activities of institutions and their managers is established by the bodies exercising the functions and powers of the founder.

To develop performance indicators for the activities of subordinate cultural institutions, their managers and employees, the Ministry of Culture has developed Recommendation No. 920 by government bodies of the constituent entities of the Russian Federation and local self-government bodies.

According to Recommendations N 920, it is recommended to develop performance indicators for each type of cultural institution: public libraries, museums, theaters, cultural and leisure organizations, cultural and recreation parks, circuses, circus groups, zoos, concert organizations, independent groups, production, rental and screening of films, radio and television broadcasting, archives, and other stationary and mobile institutions.

It is recommended to use as a basis when developing performance indicators the indicators established in the Program “Development of Culture and Tourism”, the Federal Target Program “Culture of Russia (2012-2018)”, approved by Decree of the Government of the Russian Federation dated 03.03.2012 N 186, the Action Plan, as well as specified in departmental lists of state (municipal) services (works), lists of criteria for assessing the activities of state (municipal) cultural institutions, provisions on incentive payments to the heads of state (municipal) cultural institutions, other regulatory legal acts of a constituent entity of the Russian Federation or municipal entity.

When developing performance indicators, it is recommended to pay attention to the following parameters:

— ensuring that wages are linked to improving the quality of government (municipal) services provided (work performance);

— introduction of an interconnected system of industry performance indicators from the federal level to specific institutions and employees;

— target indicators of the institution’s activities aimed at achieving the indicators determined by the “road maps”, including indicators characterizing the implementation of structural and institutional reforms, as well as indicators on the ratio of the average salary of the institution’s employees and the average salary in the constituent entity of the Russian Federation;

— indicators of the fulfillment of the state task for the provision of public services (works), the quality of the provision of public services, the growth of income from the provision of paid services compared to the previous period;

- volume of activity, as well as the number of people using the services of a cultural institution (for a year, half a year, quarter, month);

— expansion (updating) of the list of services provided to the population (for the same periods);

— implementation of the principle of increasing wages in accordance with the increasing labor efficiency of employees.

In performance indicators of managers, it is recommended to take into account, among other things:

— change in the qualification level of employees (for six months, a year);

— occupancy rate of staff during the year (month);

— change in expenses for employee training (per year);

— use of modern work technologies in the work of cultural institutions (monthly).

When forming performance indicators for the main categories of employees, it is recommended to take into account the following:

— complete use of the working time fund in the corresponding period;

— no complaints from the manager regarding the performance of official duties;

— no complaints from consumers of services regarding the quality of the employee’s work;

— initiative in work, exchange of experience, as well as other performance indicators.

The appendix to Recommendation No. 920 provides an approximate list of performance indicators by type of institution. For example, theaters are recommended to use the following indicators:

— number of new and majorly renewed performances;

— the number of public performances on stage (main stage, rented venues), on tours throughout Russia and abroad;

— the number of public performances for children and youth audiences;

— number of spectators according to tickets sold;

— average occupancy of a hospital hall (in percentage) (for institutions operating ticket services, according to tickets sold);

— the number of new productions of plays based on works of modern Russian drama (written no earlier than 1992) (for drama theatres);

— the number of new productions of plays based on works by modern composers (written no earlier than 1960), as well as productions by modern choreographers (for opera and ballet theaters).

How to motivate

The performance criteria associated with activities become the most important. Based on the content of Federal Law No. 44-FZ, the strong external indicators in the work of a contract manager are as follows:

In the organization, the commission for additional payments:

• counts the points of each employee in the accounting period;
• sets the sum of points for all employees;
• determines the weight of one point in rubles;
• determines the amount of the incentive payment.

There is no form established by the legislator for the conclusion on the work of the payment commission under an effective contract, so the institution determines its own template.

About the author of this article

Alexandra ZadorozhnevaAccountant, project expert Practicing accountant. I have been working since the beginning of my studies at the university. I have experience in both commerce and budgeting. From 2006 to 2012 she worked as an accountant-cashier and personnel officer. From 2012 to the present - chief accountant in a budgetary institution. In addition to direct accounting, I am involved in purchasing and economic planning activities. I have been writing feature articles for specialized publications for 4 years.

Other publications by the author

• 2022.02.28 Procurement control The Ministry of Finance clarified whether to simultaneously provide benefits to organizations of people with disabilities and penal institutions
• 2022.02.28 Procurement controlInstructions for drawing up a report on purchases from SMP and SONO according to 44-FZ
• 2022.02.25 Procurement control How the Treasury authorizes transactions with funds of treasury support participants from 2022
• 2022.02.25 Customer documents Plan to change the rules for drawing up FCD plans in institutions

Structure and functions

An effective employment contract is based on existing labor laws and uses the opportunities therein to create a detailed agreement between employee and employer. The main document when drawing up a contract is Article 57 of the Labor Code. Let's look at the sections of an effective contract below.

Labor function

One of the most important sections in any contract is the employee’s labor function.
In other words, the definition of job responsibilities is a mandatory clause of the contract. When switching to an effective contract, the labor function remains unchanged. If the employee was a teacher, he continues to be a teacher and perform a completely identical function. Let's look at each component of an effective contract in more detail, because this information will show the features and differences from an ordinary employment contract.

Salary

In order to increase labor productivity, the Ministry of Labor has developed detailed recommendations regarding the remuneration system. The central concept has become measurable performance indicators. Having achieved them, the employee should be financially rewarded. According to the plan, this will allow solving two problems at once - increasing the level of wages in the public sector and improving productivity.

Indicators (for which awards are given) must be based on measurable data. These include the degree of satisfaction with the quality of services, the number of services provided. In other words, the employee is rewarded with additional payments for good work. In Western HR practice, such indicators are known as KPI (Key Performance Indicators). When working with Russian sources, you should use Letter of the Ministry of Education and Science NAP-1073/02.

For each individual institution it is necessary to develop its own key indicators. One system is suitable for a medical institution, and another for an educational institution. If an employer from the private sector decides to adopt the development of the Ministry of Labor, then he will also have to create his own indicators.

The next step after determining the indicators is to create a system of relationships between the reward and indicators. That is, it will be necessary to determine the size of the reward for achieving the established result. In this matter, one should adhere to the golden mean.

Sample of an effective employment contract:

Paying inflated remunerations will seriously put pressure on the company's budget. In addition, an incentive payment that is too high will not be optimal psychologically.

In this case, employees will be strongly focused only on receiving additional payment, while forgetting other important components of the work process (for example, cooperation and communication). Too small a reward is perceived as an insignificant incentive; the employee will not actively strive to achieve the set goals.

To design a payment you will need to indicate:

• Name of incentive payment;
• Condition for receiving - the simplest case would be “achieving 100% of key indicator A”;
• Key indicators (which lead to rewards);
• Frequency of remuneration - payment can be one-time or regular. If there is a link, for example, to a monthly plan, then
• remuneration is paid every month. One-time payments have much less effect in terms of creating a long-term incentive;
• Payment amount.

In this way, the salary in the employment contract will change, but without the consent of both parties, this manipulation is impossible.

Social support

An effective Labor Agreement does not imply a fundamentally new system of social support for employees .
Only general recommendations are given - you should rely on federal laws, the Labor Code, and also use other documents relating to social services. assistance to employees. When transferring staff to an effective contract, it would be a good decision to better specify social support measures and make a more detailed description (if it has not already been done). This way, you will show all the advantages of an effective contract and thereby convince the employee to sign this document of his own free will.

You may also be interested in the article “Fixed-term employment contract and pregnancy,” in which we will talk about the advantages and disadvantages of this type of document for an employee in an interesting position.