Open Book Contracting

What is Open Book Contracting?

Open Book Contracting is an effective way to drive commercial value for both contracting parties and is where  both the supplier and the customer collaborate transparently. Instead of keeping costs and risks hidden, the parties are "open” and discuss, agree upon and report actual costs throughout the contract's lifespan. It is similar to a “cost plus” contract but the focus is on partnership and delivering business outcomes (often incentivised) as opposed to containing cost only.

Benefits of Open Book Contracting

Open Book Contracting is not just about transparency; it's about achieving the best commercial value for all involved. Both the Private and Public Sectors employ this approach, integrating provisions that champion transparency, honesty, and often linking payment and profits to critical KPIs.

Promotion of Transparency

These contracts are all about clear communication, ensuring that both parties are aware of and agree on all costs involved.

Enhanced Collaboration

The open nature encourages a partnership-driven approach, cultivating trust and encouraging joint problem-solving.

Value Addition

Open Book Contracts can be a source of value throughout the project, highlighting performance impacts on financial outcomes.

Mitigating Overspend

Effective management means staying on top of expenses, ensuring delivery without unexpected costs.

Driving Optimal Outcomes through Transparent Contracting

Effective Open Book Contracts rely on transparency and building lasting, trust-based business relationships. This requires an organised approach, keen insight into associated processes, cost drivers, and the nuances of the contract in question.

The Public Sector frequently employs open book contracts, granting buyers insight into the supplier's cost foundations. While this often results in savings for the Public Sector, it poses the question: How can your business benefit optimally from this arrangement and guard against the risks? This is where our expertise becomes invaluable.

Engaging with Us: A Partnership for Success

Thinking of bidding for an Open Book Contract? Engage usright at the beginning. This timely collaboration ensures that we optimallyshape the success of the contract. We cater to your requirements, be itconsultancy, bespoke tools, or sustained on-site consultancy throughout theproject's duration.

And if your project is already underway, our interventioncan bolster contract value, ensuring compliance, and guaranteeing optimaldelivery.

Partner with us

Open Book Contracting presents an innovative and collaborative approach to contracting. When correctly managed and facilitated, it can be a game-changer for both parties involved. Let us guide you through this journey of transparency and together, we'll unveil the true potential of Open Book Contracting.