Example contract assessment

When planning a contract, it can be useful to have an indication of the relative size and complexity of the contract. This assessment can help inform decisions on the appropriate level of planning and resources needed to effectively manage the contract.

This contract assessment is an example of how the assessment can be made in a structured manner using a low, medium or high scale for a range of factors relevant to the particular contract.

Size and complexity ratings

Factors

Low

Medium

High

Strategic importance to contracting entity

Business-as-Usual

Has management attention

Has executive and/or ministerial attention

Political importance

Internal

Commonwealth

Cross-jurisdictional

Breadth of impact on Australian Government entity

Single agency

Multiple agencies

Whole-of-Government / cross-jurisdictional

Extent of impact (for example on stakeholders, clients, users)

Can do without for a period

Is needed for efficient operations

Is essential to operations

Nature of contract deliverable(s)

Straightforward

Average

Complex

Certainty and clarity of contract requirements / specifications

Certain

Some uncertainty

Uncertain

Degree of innovation needed

Low

Medium

High

Duration

0-6 Months

6-12 Months

> 12 months

Flexibility of implementation dates

Open

Firm

Immovable

Value

$ to $

$ to $

$ to $

Security requirements

Low

Medium

High

Contract Sponsor: commitment / priority for this contract

High

Medium

Low

Number of user areas / key decision-makers

< 5

5-10

> 10

Geographic locations for contributors and deployment

1

2-5

>5

Overlap with other initiatives

Standalone project

Some dependencies with other projects

Interdependent with a number of other projects

Number of contracting staff

1-5

5-10

More than 10

Contracting staff: experience / skills in this type of contract

Highly experienced with similar projects

Good experience in industry

Little or no experience with similar projects

Client / users: degree of support and enthusiasm for this contract

Strong champion

Support at management and user levels

Limited support at either management or user levels

Client / users: availability to assist in contract award and management

Appropriate number of users with required skills and knowledge available

Users with limited skills and knowledge available

Few users with limited skills and knowledge available

Ease of changing suppliers after the contract is let

Easy

Some scope for change

No other supplier available

Dependence by contractor on subcontractors

Low

Medium

High

Other (specify)

Other (specify)

OVERALL size/complexity assessment (based on individual ratings and the relative weight given to each factor)

MEDIUM