Global Contract Logistics

INDEX

NB: conclusions, key points and summaries are indexed as such page numbers in italic indicate figures or tables

80/20 rule of contractors 35

acquisition myths 21–38

1. firm-price contracting is always best 21–24

2. shift as much risk to supplier as possible 24–25

3. buy in big blocks to reduce client’s cost and risk 25–27

4. always use liquidated damages 27–28

5. rely on long-term relationships, stick with one contractor without recompetition 28–30

6. ‘partner’ with suppliers and create alliances 30–31

7. trust your contractor 31–32

8. customers should never try to manage contractors 32–34 see also Hawthorne Effect

9. always pick low bidder and the one retaining the most risk 34–35

10. pay fast and audit at the end 35–36

11. let contractors ...