Chapter

Value Capture

Simon Domberger

in The Contracting Organization

Published in print November 1998 | ISBN: 9780198774570
Published online November 2003 | e-ISBN: 9780191596148 | DOI: http://dx.doi.org/10.1093/0198774575.003.0006
 Value Capture

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This chapter, the previous one, and the next two consider the alternative means through which a contracting strategy is devised and implemented. Chapter 6 explores how added value can be captured by the contracting organization, either through a competitive or a negotiated process. The different parts of the chapter are as follows: Competitive tendering––bidding for contracts; Pre‐selection––calling for expressions of interest; Alternative sourcing methods; The contract price; Winners and losers (a discussion of the fact that a winner's bid price may be too high and eventually lose the firm money); and Value migration.

Keywords: added value; bid prices; bidding; competitive tendering; contract price; contracting out; contracting strategies; outsourcing; pre‐selection; sourcing methods; value migration

Chapter.  7545 words.  Illustrated.

Subjects: Microeconomics

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