This part of the Guide discusses entity arrangements for managing contracts. Entities should have in place management arrangements that are designed to maximise overall value for money of contracting activities and enable them to have in place processes that meet all internal and external management and reporting responsibilities in a cost-effective manner. These arrangements should be an integral part of the entity's governance and control environment within which individual contracts are developed and managed.

Key tasks

The key tasks involved in the entity arrangements for managing contracts are:

Identify and manage risks.

Establish effective lines of communication with stakeholders.

Establish and sustain contracting capability.

Establish systems and procedures.

Entities should have in place management arrangements that are designed to maximise overall value for money of contracting activities.