Contractual Agreements in Government and Non-Government Sectors

This presentation discusses the standard procedure for contractual agreements in government and non-government sectors, highlighting the basic differences between the two. It also covers the managed services process, the unique aspects of ICT projects, and the contractual relationships between project stakeholders in the private and government sectors for construction projects.

Commercial Project
Negotiation
Name of the Student:
Name of the University:

Government and Non-Government
Contractual Agreement
Selecting
a
Contract
Collect
Informati
on
Choose
Negotiato
r
Contract
Review
Contract
Signing
Contractual agreement
process for government and
non-government sectors are
more or less the same and it
follows a standard procedure.
In spite of the similarities,
there are a lot of basic
differences between the two.
Government agreements are
generally signed for long term
whereas the non-government
agreements are mainly for short
to medium terms.
Due to having more legal
power and support, government
contract negotiation mainly
favors the government.
In commercial contract
negotiation, both parties have
equal negotiation power.

Managed Services
 Contractual agreements
follow managed services
process.
 The contract clauses must be
monitored, operated,
optimized and transformed to
reach a suitable agreement.
 Government managing
services is done using
application of superiority and
legal power of the
government for gaining the
benefits.
 Private managing services are
to be mutually agreed by both
parties as both of them seek
equal benefits from the
project.
Manag
ed
Service
s
Monitor
Operate
Optimize
Transfor
m

Information and Communication
Technology (ICT)
 Contractual agreements for ICT is somewhat
different from the other sectors.
 For ICT projects, different parties are
associated and hence, contracts are to be
developed to benefit all the parties.
 For Government ICT projects, the duration of
project is long and requires detailed contract
clauses.
 For non-government projects, there are only
a few project based clauses due to limited
scope.

Build Agreement
 Build agreements are
generally associated
with construction
projects.
 The contractual
relationships between
the project stakeholders
in the private sector are
shown in the diagram.
 In government sector,
the government is at the
head of the contract and
the contract is done
directly with the
contractor. Other
relevant stakeholders
for the project are also
attached in contracts
with the government
directly instead of the
predecessor
stakeholder.
Consultant Owner
Sub-
Contractor
Contractor
Design
Builder
Architect
Consultant

References
Kumar, D., 2017, March. E-Negotiation:
Emerging Trends in ADR. In International
Conference on Information and
Communication Technology for Intelligent
Systems (pp. 92-98). Springer, Cham.
Liu, J., Yu, X. and Cheah, C.Y.J., 2014.
Evaluation of restrictive competition in PPP
projects using real option
approach. International journal of project
management, 32(3), pp.473-481.