Annex: Key terms used in the Report
Consulting:
Work is defined as 'consulting' if it has two characteristics.
First, individuals or companies are engaged to work on specific
projects that are outside the client's business as usual, and
there is an end point for their involvement. Second, responsibility
for the final outcome of the project (for example achieving cost
savings or improving quality of service) largely rests with the
client. As such, consulting is distinct from 'outsourcing' or
'staff substitution'.
Framework agreement:
A framework agreement is a general term for agreements with suppliers
which set out terms and conditions and standard prices under which
specific purchases can be made throughout the term of the agreement.
Fixed price: Refers to
contracts whereby the supplier receives payment based on a fixed
price agreed at the project outset.
Flat rate expenses: Refers
to expenses that are charged at a set amount per period or as
a percentage of fees, without matching or validation against actual
expenses incurred.
Incentivised contracts:
Refers to contracts where a proportion of the payment is based
upon their performance. For example payment may be linked to delivery
of products against an expected timeline throughout the project
or linked to the time taken to complete the project.
Time and materials: Refers
to contracts whereby payment is based on the time worked rather
than on the production of specific output.
| 
