Procurement Model and Contract Type Are Different Decisions
Why leaders should separate the delivery relationship from the pricing mechanism when designing procurement strategy, risk allocation and supplier governance.
Professional knowledge and strategic perspectives across strategy, projects, operations, engineering, transformation and business performance.
12 articles found
Why leaders should separate the delivery relationship from the pricing mechanism when designing procurement strategy, risk allocation and supplier governance.
How leaders should scale contract architecture to delivery interfaces, duration, uncertainty, consequence, operating demands and lifecycle complexity.
Limited liability allocates risk; it does not remove it. The exposures sitting outside the corporate veil are usually the ones nobody has ever listed.
Moving a risk to your contractor changes who is liable, not who is exposed. When the contractor cannot carry it, the exposure returns — usually through a court.
Why procurement models can transfer, retain or share defined risks but cannot eliminate uncertainty, weak scope or poor interface governance from a project.
Why PPP value depends on allocating each risk to the party best able to manage it rather than transferring as much risk as possible to the private sector.
Why exceptional-event clauses and the legal doctrine of frustration solve different problems, and how leaders should decide which uncertainty belongs in the contract.
How leaders should evaluate exclusion and limitation clauses as deliberate choices about liability, insurance and enterprise risk.
Why firm fixed price creates commitment visibility only when scope, performance, interfaces and acceptance are mature enough for credible pricing.
How scope certainty, cost uncertainty, competition and supplier behaviour should shape contract type instead of treating fixed price or cost reimbursement as default labels.
Why public-private partnerships combine financing, asset delivery, lifecycle service and long-term performance into a broader enterprise and policy decision.
A growth bet funded from the business that pays for it becomes a bet you cannot stop. Why the separately capitalised vehicle is a governance decision.