Key terms

We have used the following key terms:

•  commercial and contract management refers to the wider process of managing a contract across a project's lifecycle.

•  procurement process refers to the process of identifying a supplier of a good or service and then arranging a contract, including the tendering and any competition and negotiation.

•  contract termination refers to the ending of a contract, either through reaching the end of its defined period or other reasons.

•  contract transition refers to the continuing of provision after the end of the contract, either through extension, renewal or a new contract with a different supplier.

When describing risk, we use contract risk to encompass all risks related to a contract and its performance, compliance risk as the risk of consequences of failing to follow expected standards, and risk allocation to mean the proportioning of contract risk between different parties.