In many service delivery contracts it will be necessary for the contract to include transition in and transition out arrangements. These provisions are designed to ensure that there is an orderly introduction of services by the contractor at the commencement of the contract and for effective contract succession at the termination of the contract.
In circumstances where a transition in phase is required, the contract should:
• specify the period of the transition. This may be after a specified period of time or at the date of the achievement of agreed milestones or service levels, and
• detail the contractor's responsibilities during this period. This will often involve the contractor preparing a detailed transition in strategy or plan that requires the approval of the acquiring entity. This document should provide for a formal evaluation or review at the conclusion of the transition in period.
It is also important that the contract specify the contractor's responsibilities at the end of the contract. This may entail the contractor preparing a transition out strategy or plan at a specified time. The date set for its preparation should allow sufficient time for all required actions to be addressed by both the contractor and the acquiring entity before the contract ends. Where the strategy or plan is prepared at the commencement of the contract, provisions should be made for it to be reviewed and updated as necessary before the contract expires.