Usually it will be clear to a contracting authority how to categorise a contract. For example, the construction of a new building is clearly “works” while the provision of a cleaning service for a hospital is clearly “service”. However there are projects that contain a mixture of elements such as supplies and services. A good example might be the requirement of a contracting authority to acquire specific IT software together with staff training to use the software.
In these cases the following guidelines should be applied.
Table 2-32: Guidelines for categorizing mixed contracts
|•||Where it involves supplies and services the classification of the contract should be determined by which element is of a higher value|
|•||Where it covers works/supplies or works/services the classification of the contract,should be determined by the predominant purpose|
|•||Where a contract provides for the supply of equipment and an operator it should be regarded as a services contract|
|•||Contracts for software are classified as “supplies” unless they involve development to the contracting authority’s specification in which case they are classified as “services”.|