What is a contract?
A contract is like a promise between people. It is an understanding, a deal between two or more people or organisations to do certain things. Each organisation who agrees to do something in a contract is called a party.
An agreement, or a contract, says what you and the other person or organisation have agreed to do. It is a written list of the promises you have made which generally includes
- what each party promises to do (what is expected of you and what you expect of the other party)
- what happens if a party does not keep its promise
- protections for each other’s needs and rights
By understanding the contract you enter into, you'll be better able to negotiate terms that work for you.
Also, government disclosure requirements which means that certain information is made publicly available on SA Tenders and Contracts
What type of contracts do agencies use?
The Government has developed a suite of standard template contracts with terms and conditions that are simple and fair to both parties. Contracts that are common across all agencies are:
The Standard Goods & Services Agreement is the most common contract for low/medium risk goods and services.
The Standard Not-For-Profit (NFP) Funded Services Agreement has been developed to simplify and standardise the contracting process for these organisations. This Agreement is used where the NFP organisation provides services in exchange for up-front block funding.
These Agreements consist of the following sections
- Execution Page
This page is where Supplier and Government representatives sign the contract. - Agreement Details (i.e., the variable content of the contract)
This section outlines the key details of the agreement, including important dates and milestones, details of deliverables, and payment details. - Standard Terms & Conditions
This section outlines the terms and conditions of the contract. - Glossary of Defined Terms
This section provides a list of all the terms used in the contract. - Special Conditions
This section outlines any additional terms and conditions not covered by the standard terms and conditions. - Specifications
This section provides a detailed description of the expectations and requirements for the goods and services to be delivered under the contract. - Pricing & Payment Details
This section outlines the detailed payment information including when and how payment or funding is payable.
The Standard Purchase Order terms and conditions may be used for low value, low risk goods and services. Some agencies have their own purchase orders or use an automated ICT system that generates purchase orders.
The Standard Minor Works Agreement is commonly used for low-risk construction projects.
All civil, maintenance and building conditions of contracts are developed by the Department for Infrastructure and Transport.
These are available on Department for Infrastructure and Transport Contractor Site
