This part of the Guide discusses formalising the contract between the acquiring entity and the contractor.

The purpose of this phase is to ensure that the signed contract represents a value for money outcome and is a legally enforceable document between the acquiring entity and the contractor.

For straightforward contracts, formalising the contract is likely to require minimal effort. For more complex contracts, this phase may require considerable planning and effort over a longer period of time.

Negotiation is a common feature of contract formalisation for both straightforward and complex contracts. Negotiations are not required in all cases but can assist in obtaining overall value for money and in finalising contract terms and conditions such as contract deliverables, developing and agreeing the performance regime and payment arrangements.

In formalising the contract, it is important that the signed contract accurately reflects all discussions and agreements between the parties; and is approved and signed by those with the relevant authority. Once the contract is awarded there may need to be a public announcement, unsuccessful tenderers will need to be advised and debriefed where required, and any complaints addressed.

Negotiation is a common feature of contract finalisation for both straightforward and complex contracts.

Key tasks

The key tasks involved in formalising the contract are:

Identify and manage risks.

Identify and assign responsibilities.

Plan and conduct contract negotiations.

Approve and sign the contract.

Announce contract award.

Meet reporting requirements.

Debrief tenderers.

Behave ethically.

Address any complaints.

Keep records.

It is important that the signed contract accurately reflects all discussions and agreements between the parties.