This is where we define the form of contract informed by the commercial model.
This includes:
• defining critical risk allocation, and ensuring it is properly reflected in the contract
• documenting the decisions made earlier on the contractual roles and responsibilities
• defining clearly the rights and obligations of each party and the associated contractual processes required to implement the commercial model, manage the contract and deliver the project
The contract is where all the key elements of the project are drawn together and must be a fully integrated, consistent suite of documents. It will define what you want to buy (specification), the method and timeframe for delivery, risk allocation and other key commercial terms (e.g. the payment mechanism and KPIs) and what happens if things go wrong.