2.8.4 How long should a contract run for?

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The length of a contract will depend on the nature of the project being procured. It is important to decide on the optimum duration of a contract. Contracting authorities should try to strike a balance between the competitive value of a short term contract and the ability to go back out to tender against the stability, continuity  and possible better annual value for money achieved through longer term contracts.

The longer the period of a contract the greater the monitoring requirements.

Consider early on about the issues of re-competition at the end of the contract period, particularly if a long term contract is likely to provide better value for money. Re-competition occurs when:

the end date of the contract has been reached
the decision has been made to terminate a contract
The supplier resigns or becomes insolvent.

The re-tendering process should begin well in advance of the end of the current contract such that in cases where there needs to be a smooth transition, and the existing supplier does not retain the contract, there is time to induct a new supplier. Importantly, re-tendering is subject to the same procurement processes as outlined in sections 2.1 to 2.7.


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