6.4.2 Factors having a negative effect on the relationship

between Contracting Authority and Contractor

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Cases where the Contracting Authority and Contractor relationship is affected by external factors and lacks the room for development which, under normal conditions, it could have, are:

The Contracting Authority and the Contractor are characterised by different cultures which are in conflict during the implementation of the contract scope, Project management and contract management.
The contract scope is innovative and the economic operators which can implement it apart from the successful one are few. The Contractor does not feel, during the execution of the Contract, the competitive pressure in the market and begins to deviate from the course to provide the best value for money.
Most of the Contractor's turnover comes from the implementation of projects for the specific Contracting Authority, in which case he is quite susceptible to the pressures he may be subjected by it
The activity, operation and services of the Contracting Authority depend to a great extent on one economic operator (the Contractor) resulting in the former fearing of any withdrawal of the economic operator from the market for any cause/ reason whatsoever.

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