This Guide covers the phases of the procurement cycle commencing from the selection of a preferred tenderer or contractor through to managing and ending the contract. The Guide is intended to complement other procurement publications which focus on the early stages of the procurement cycle, such as the preparation, issue and evaluation of tenders.
A range of principles, key issues and considerations relevant to the development and management of contracts generally, is outlined in the Guide. They are intended to complement, rather than replace, specific guidance and advice developed by individual entities. For very large, complex contracts such as equipment acquisitions, detailed and tailored guidance will be required.
A number of specific issues associated with the legal processes of contract development or detailed contract clauses needed to avoid or mitigate a range of common risks are mentioned in the Guide but not discussed in detail. This is due to the number of potential issues involved and because of the evolving nature of legal precedent. Contract managers are encouraged to seek professional advice on these issues, as necessary.
The Guide also does not address project management although many of the issues canvassed in the Guide will also apply to the management of projects.
For ease of reference and presentation, the following terms are used in this Guide:
• Acquiring entity: the party that enters into the contract and is responsible for its management
• Contractor: the party engaged to provide the specified goods or services
• Contract deliverables: the goods or services to be delivered by the contractor
• Public sector entities: all organisations subject to the Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Acts 1997, and
• Stakeholders: the parties that have a legitimate interest in the procurement process. These can include Ministers, senior management of the acquiring entity and of other entities affected by a contract, and end-users of the goods or services to be provided.