Getting the Best Deal: Designing more effective procurement contracts using the new tools of organisation economics
Contracts are part of the intangible economic infrastructure of the modern economy. Ubiquitous, but often misunderstood by buyers and vendors, they provide the transaction engineering support to the invisible hand. Contracts aren’t new but the increasing number, variety and complexity of them is. An estimated 80 to 90 per cent of all business goods and services today are traded through extended-term contracts, often lasting for a year or more. With the rise of outsourcing, public-private partnerships, strategic alliances, and complex systems and technology procurement, contracts are a fundamental building block of the 21st Century economy. Drawing on the pioneering work of Ronald Coase and Oliver Williamson, the presentation will explain contract economics in action - the design and implementation of effective contractual arrangements.
The Presenter: Jay Horton
Jay heads up Strategis Partners Pty Limited, a Sydney-based consulting firm specialising in the economics of strategy and organization. Strategis Partners is an adviser to companies in consumer, industrial and agribusiness products, energy and mining, and retail industries – and to government agencies.
During his twenty year consulting career, he has worked with clients in Australia, Asia and North America on engagements including strategic review of a $1B IT outsourcing deal, real option value analysis of telecommunications procurement, and mediation adviser in a maintenance contract dispute for an energy utility.
Jay’s qualifications include Master of Economics from Australian National University.