Decisions, Decisions, Decisions: A Guide To Effective Procurement Contracting In Australia

"In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing."

— Theodore Roosevelt

Effective contracting in procurement starts with strategic decision-making about the type of contracting structure and type of pricing methodology to be adopted in the contract, and it ends in effective contract administration and handling of disputes.

This White Paper focuses on the front end of that process and provides a methodology, borrowed from management theory, for deciding between contracting structures and pricing methodologies.

Definitional Issues

For ease of understanding, it is important to define some terminology that is used throughout this White Paper.