ABSTRACT
This chapter examines the role of the budget manager as a contractor for service delivery. Budget managers need to be competitive but unless they have been directly exposed to the market economy, few really know how this can be measured or achieved. The chapter focuses on lessons learned from competitive tendering and other initiatives. It shows how managers can subject their service to a critical examination as far as their competitiveness is concerned. The chapter contains details on how: to take stock of present capacity and capability; to obtain evidence of competence; to prepare and comply with service specifications; a select list of competitive tenderers is prepared; and a contract is awarded and monitored. It also examines organisational characteristics, the way a budget should operate, mutual expectations for improvements, and acceptable levels of delegated authority and responsibility.
