Transaction Management

Transaction Management is the terminology used for coordination and management of major commercial transactions, high value and high-risk infrastructure procurements, and/or complex collaborative agreements between the government and private sector and can be summarised as procurement activity that doesn't fit within a traditional procurement framework for reasons such as value, complexity or the nature of the supply market i.e. creation of a new market or innovation to an existing market. ‘Transactions’ are usually high value, complex and one-off construction projects (even though they may have a long operational period after construction).

Generally, a Transaction Management approach is required when an organisation requires the development of a solutions focussed process for engaging with a specific market or industry. For major transactions, it is important to remember that it is not a 'business as usual' requirement, but rather a major project that needs a dedicated team and bespoke approach to effectively deliver the targeted outcome.

When do I need a Transaction Management approach?

When an organisation is required to deliver a major project, standard procurement processes and internal resources may not be appropriate for the complexity of the project. A major ‘transaction’ usually requires:

• transaction strategy specifically developed for the market/requirement at hand;
• a dedicated (and experienced) team to develop the documentation, manage internal stakeholder inputs and issues, manage proponents and ensure the project timeframes are achieved;
• a focus on probity to ensure an interactive and collaborative approach is conducted with the market while ensuring all participants are treated equitably; and
• a strong commercial focus and the ability to implement innovative pricing and contract models
  

An example would be for large infrastructure projects delivered through an alliance model. This is where the customer and the proponent form a partnership to ensure effective project delivery. These can be known as a PPP (public-private partnership project), where the proponent(s) build and own an asset on behalf of the government, with the government sharing project risks/reward.