Intellect challenges guidance on public sector contracts

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.