This part of the Guide discusses the entity arrangements for managing contracts. Entities should have in place management arrangements that are designed to maximise the overall value for money of contracting activities and enable them to have in place processes that meet all the internal and external management and reporting responsibilities in a cost-effective manner. These arrangements should be an integral part of the entity's governance and control environment, within which individual contracts are developed and managed.

The approach an entity takes to managing its contracts, the resources devoted, and the effort required, is best guided by:

•  the number, complexity and value of its contracts, and

•  the importance of contracts to agency goals.

Entities should have in place management arrangements that are designed to maximise overall value for money of contracting activities.