Framework for Structuring Procurement Contracts

The aim of this paper is to propose a new structure for classifying contract types and payment methods. Concerning the procurement contract types the first important feature is the stepwise structure with three main steps in the contract design: (1) should the contract only include construction or both construction and operation/maintenance? (2) Who should do the detailed design of the premise? (3) How many contractors should the client use? An important new feature of the structure is that in both step 2 and step 3 there is a continuum of alternatives. Concerning the payment methods the structure is primarily based on how the project specific risks are shared.