This chapter considers the contract management process. Like any other contracting party, the government's aim is to obtain the goods and services it has contracted for at the agreed price and in accordance with the contract's terms. However, some commonly-encountered risks take on a different character in government contracts. The chapter considers financial risks, including concerns about ‘excessive’ profits and demands from the contractor for additional payments, and the danger that the contractor may fail to perform in accordance with the contract specifications. It argues that some public law rules and some modifications to contract doctrine may be required to enable the government to manage these risks in accordance with the requirements of value for money and propriety. Finally, the chapter considers the government's political and public accountability for the decisions it makes during contract management and dispute resolution, and suggests reforms to strengthen this accountability.
Keywords: dispute resolution, value for money, propriety, risk, accountability