How to write a contract

Here's a guide to what you should include in a contract, with advice to help you tailor this to the value and importance of what you've purchased and who you've bought from.

Last reviewed on 22 February 2022
School types: All · School phases: All
Ref: 44226
Contents
  1. Categorise the value and importance of the contract
  2. Seek legal advice
  3. How to tailor the contract to the value and importance
  4. Detailing the scope and quality of service 
  5. What to include in the exit strategy
  6. Final considerations
  7. Common acronyms

Categorise the value and importance of the contract

Measure your contracts by their financial value and the strategic importance of the supplier, to map them roughly onto the matrix below.

Supplier value x importance matrix

For the financial value, you can decide how to place it, but as a rule of thumb:

  • Anything which falls into your low to medium value buying threshold (whether you followed your own process or bought through a framework agreement) would be in the 'low value' half
  • Anything that you bought above your high value threshold - whether through a framework or by running your own buying process for high value or above the Public Contracts Regulation (PCR) threshold - would be in the 'high value' half

How highly specialised their good/service is – something that's widely available is likely