2.8.1 What is the Contract trying to do?

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The contract is an agreement between the contracting authority and a supplier providing goods, works and/or services. It is important that whatever contract is developed it demonstrates:

the contracting authorities intent to contract;
a clear offer from the contracting authority and a clear acceptance of the offer by the supplier;
the ability of both contracting authority and supplier to legally contract;
a price that the contracting authority agrees to pay the supplier;
a clear agreement between contracting parties about the terms and conditions of the contract.

It is important that contracting authorities incorporate a number of key generic considerations within the contract. Contracting authorities can use the following checklist to ensure that the key elements are included in any contract which is awarded within the designated period of the offers validity.

Table 2-28: Key generic considerations for inclusion in a contract

Key Considerations


Have you included the nature of the goods, civil works and/or services being procured?

Have you defined the quantity being provided?

Have you outlined the contract or unit price?

Have you determined the duration of the contract?

Have you identified the conditions to be fulfilled by supplier and contracting authority?

Have you outlined the terms of delivery and payment?

Have you defined the currency of payment?

Have you included the name and address of the Supplier?

Have you identified the rights and obligations of the contracting authority and of the Supplier?

Have you considered the protocol for staff substitution?

Have you included all appropriate aspects of the law relevant to the contract?

Have you included provisions for the settlement of disputes?

Have you included the ownership of intellectual property where appropriate?

Normally the Procurement Manager is responsible for issuing the contract. Contracting authorities need to ensure that staff have the necessary skills and expertise to manage contracts and either considers training and development or buying-in contract management expertise.

It is important that those staff that will be monitoring the implementation of the contract should be involved in the development of the contract.


© 2007 Republic of Cyprus, Treasury of the Republic, Public Procurement Directorate
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