Contractual Arrangements: Government vs Non-Government Sectors

COMMERCIAL PROJECT
NEGOTIATION
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Introduction
 Contract agreement is a mutual agreement
between two parties regarding a particular
partnership or project that will be beneficial for
both the parties.
 Contractual agreements may be between
government and non-government organizations
depending on the type of work required.
 However, there are some basic differences
between government and non-government
contractual arrangements for which, the terms
and conditions in the contracts vary widely
(Aydin, Akinci & Yilmaz, 2016).

Literature Review and Analysis
of Contractual Arrangements
 According to Sikka and Lehman (2015),
government and non-government contract
negotiation and arrangement processes are vastly
different in terms of scope, benefits, objectives
and control power of the involved parties.
 This is because, for government contractual
arrangement, the power is mainly shifted towards
one party whereas for non-government
contractual arrangement, the power is balanced
between the two involved parties.
 Some specific contractual attributes that differ in
the two sectors are discussed under the following
headers.

Literature Review and Analysis of
Contractual Arrangements (Contd.)
 In government and non-government
seconds, the operations of diverse
contractual arrangements vary widely.
 For government contractual
arrangements, the government prepares
the list of requirements, develops
business case, prepares terms of contract
with specific and unchangeable goals and
then calls for tender for contractors.