NAO audit framework

Contract approach

4. Has the contract set up risk and reward dynamics that will encourage delivery, minimise perverse incentives and promote good relationships?

4.1  Is there an appropriate allocation of risk between department and contractor?

4.2  Are there incentives to encourage the contractor to act in the interest of the department?

4.3  Are suitable mechanisms established to drive the desired relationship?

Examples of relevant guidance

Cabinet Office open book accounting guidance

Required government to decide which contracts would benefit. At a minimum it recommends understanding cost units and drivers.

Open-book accounting and supply-chain assurance (NAO report)

NAO good practice contract management framework

4.1  The contract manager understands his/her own role and has clear visibility of well-structured roles and responsibilities on the supplier side.

4.2  The respective responsibilities of the contract manager and the supplier are clear, and potentially defined in a 'joint statement of intent' or similar document.

Procurement policy note - Information sharing in government procurement exercises

Sets out the steps to take in the case of a commercial dispute settlement.

Model services contract and models for construction procurement (Crown Commercial Service)

Government Commercial Function- Government Commercial Operating Standards Iteration ii

6.1  Greater accessibility and awareness of commercial terms.