Benchmark Your Service Contract Price with Caution

by Chet Mauk

The purpose of this Executive Update is to critically examine service contract price benchmarking as a tool to measure price efficiency of contracted complex services against market prices. A complex service contract can be viewed as a legal framework tied to a financial model. As a result, what is actually being benchmarked is a price exhibit tied to an underlying complex financial model. A heavily contested contract price benchmark result often causes relationship stress and unwanted distraction that can get in the way of long-term goals.