Supporting information
NAO audit framework |
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| 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 |
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NAO good practice contract management framework 7.1 Contractual/supplier risk management is in place with clear responsibilities and processes, identification of who is best placed to manage risk, and supplier involvement where appropriate. 7.2 Risks are formally identified and monitored regularly, with mitigating actions developed and implemented where possible, and 'obsolete' risks removed from consideration where appropriate. 7.3 Escalation and reporting routes are in place for risk governance. CIPS' contract management guide Covers how to assess risks and set up mitigation (pp. 7-9). Outlines requirements to set out risks in business cases (at 4.3) and the Orange Book gives more detailed guidance on risk management. Cabinet Office - Communicating risk guidance Details communication strategy and how to develop good risk management more widely. Government Commercial Function - Government Commercial Operating Standards Iteration ii 6.3 Appropriate risk allocation between parties. The Scottish Government's Procurement Journey - Risk management | |