EXAMPLE CONTRACT ASSESSMENT

Once a contract is entered into, 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 this 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

1.

Strategic importance to contracting entity

 Low

Medium

 High

2.

Political importance

 Internal

 Federal

 Federal + States

3.

Breadth of impact on Australian Government entity

 Internal

 Federal

 Federal + States

4.

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

 Low

 Medium

 High

5.

Nature of contract deliverable(s)

 Straightforward

 Average

 Complex

6.

Certainty and clarity of contract requirements / specifications

 Certain

 Average

Uncertain

7.

Degree of Innovation needed

 Low

 Medium

 High

8.

Duration

 0-6 Months

 6-12 Months

 > 12 months

9.

Flexibility of Implementation dates

 Open

 Firm

 Immovable

10.

Value

 <$2m

 $2m - $5m

 >$5m

11.

Security requirements

 Low

 Medium

 High

12.

Contract Sponsor: commitment / priority for this contract

 High

 Medium

 Low

13.

Number of user areas / key decision-makers

 <5

 5-10

 >10

14.

Geographic locations for contributors and deployment

 1

 2-5

 >5

15.

Overlap with other initiatives

 Low

 Medium

 High

16.

Number of contracting staff

 1-5

 5-10

 More than 10

17.

Contracting staff: experience / skills in this type of contract

 High

 Medium

 Low

18.

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

 High

 Medium

 Low

19.

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

 High

 Medium

 Low

20.

Ease of changing suppliers after the contract is let

 Easy

   Moderate

 Difficult

21.

Dependence by contractor on subcontractors

 Low

 Medium

 High

22.

Other (specify)

23.

Other (specify)

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

 

MEDIUM