Government releases new IT contract guidance

Contractual terms and conditions adjusted to support joint delivery of programmes more effectively

Whitehall is looking to improve the terms of IT contracts

Government buying agency the Office of Government Commerce (OGC) has published a new version of its model services contract for major IT projects.

It aims to help achieve better outcomes for projects with complex IT procurements, and save time and money.

David Shields, programme director at the OGC, said the guidance was developed in close consultation with industry.

"The success of projects or programmes requiring IT support depend upon those services being contracted in the most appropriate and efficient way, and the IT model contract that we have developed with industry bodies and other stakeholders can provide a great deal of assurance," he said.

This latest version aims to make sure contractual terms and conditions support joint delivery of programmes and projects between government and the private sector more effectively.

It includes significant updates in the key areas of security management and financial distress, including an obligation on suppliers to plan to mitigate for the effects of financial problems.

Sureyya Cansoy, head of public sector programmes at industry trade body Intellect, welcomed the development.

"This new version of the model contract has made valuable steps forward, and we look forward to continuing our work with OGC and Partnerships UK to further improve the agreement to ensure that it fully meets the needs of all parties," she said.

The previous model contract was published in 2004 after a decision not to use the Private Finance Initiative (PFI) for further IT programmes.