The trade body identified concern amongst suppliers that the
OGC's uniform model or 'one size fits all' approach, which is
accompanied by a tendency to add further restrictions and
conditions to model contracts, can tip the balance of risk
allocation inappropriately.
This in turn can introduce unnecessary costs and inhibit
flexibility in solution, provision and innovation, says Intellect.
Such an approach misses the essential point that for a
project/programme to be successful, the supplier and customer must
work together to ensure their interests are in balance and the
eventual goals are understood and agreed, it argues.
Intellect director Nick Kalisperas said: "Intellect believes
changes should be made to the Office of Government Commerce's
current version of the model contracts for major IT
projects/programmes in order to create a framework that is in the
best interest of both customers and suppliers."
The Intellect guidance outlines the main contracting principles,
drawing on members' experiences from both the public and private
sectors, and recommends behavioural issues which lead to more
successful contracts.
"We hope that it will also contribute to government's own views
of best practice in contracting which should be adopted by public
sector customers," said Kalisperas. "The intention is that this
accumulated knowledge can be used to guide the tailoring of
contractual terms to fit particular needs and achieve a more
balanced contract. This should maximise the chance of a successful
project with both Customer and Supplier achieving their goals."
The publication, Contracting Best Practice – Guidance for
Suppliers, addresses key objectives for contracting best
practice:
- successful and reliable delivery by the supplier against the
customer's requirement
- value for money for the customer (including reducing
unnecessary costs)
- due compensation for the customer should the supplier not
perform as agreed
- a recognition of the customer's necessary role in contributing
to delivery
- an equitable balance of risk, with responsibilities assigned to
those best able to manage them
- acknowledgment of the importance of appropriate behaviours as a
vital part of the delivery process
- a joint commitment to work together for the success of the
programme
- a healthy and profitable project delivery for the supplier
The guidance was not available at Intellect's site at the time
of writing.
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