For some contractual arrangements there will be a transition phase. Transition refers to the changeover from one contractor to another, from one contractual arrangement to another, or the continuation of an existing arrangement on a different basis. The duration of this phase can range from a few days to several months.98 The objectives of this phase are to:

•  ensure a smooth transition to the contractor by minimising the risk of a reduction or loss of services and the impact on end-users and other stakeholders;

•  establish relationships and systems and procedures that will be used during the life of the contract; and

•  complete the transfer of information and/or assets to the contractor.

For straightforward contracts there may be a number of one-off tasks that need to be appropriately planned and resourced. In complex contractual arrangements the transition phase may require a detailed transition-in strategy or some other formal documentation to ensure all relevant matters are considered and addressed.99 The way the acquiring entity manages the transition phase will generally be an indication to the contractor about the way the whole contract will be managed. If, for example, the entity adopts a lenient approach in respect of the non-achievement of transition targets, the contractor may take this as a signal of how the entity will deal with underperformance generally.

The way the acquiring entity manages the transition phase will generally be an indication to the contractor about the way the whole contract will be managed.