The compliant procurement procedure for a given purchase is defined by the contract category and the total contract value. In the matrix below,
- decide if the purchase is a supply, service or works contract.
- identify the total value of the contract.
The contract value, in the matrix below, links to the relevant step guide for the procurement procedure to implement. The step guide is also available to download.
- Supply contracts
Supply contracts cover the purchase, operational leasing, rental or hire of products including rental of vehicles, equipment, venues and property, with or without an option to buy. The delivery of products may in addition include siting, installation, training and maintenance.
- Service contracts
A service contract covers all intellectual and non-intellectual services other than those covered by supply and works contracts. Some examples of service contracts are:
• A study contract for the identification and preparation of projects, feasibility studies, technical studies and audits.
• A technical assistance contract, where the contractor is called on to play an advisory role, or to manage or supervise a project in the supply contract.
• A rental contract for a vehicle with a driver. Rental of a vehicle without a driver is considered a supply contract.
- Works contracts
Works contracts cover either the execution, or both execution and design of a work corresponding to the requirements specified by the contracting authority.
It is a works contract when an entrepreneur or a construction company has the obligation of delivering works and is responsible for hiring and/or buying the necessary resources to fulfil this obligation (i.e. the entrepreneur hires the labour, brings the equipment and buys the construction materials and supplies).
Examples of works contracts are construction, reconstruction, demolition, repair or renovation of a building, site preparation, excavation, drilling, etc.
- Hybrid contracts
Where a contract has elements of both services and supplies, the procurement procedure is defined by the contract category with the highest value.