The Right Contractor Operating Model – a Win-Win Model

Many current contractor operating models stimulate a perverse vicious cycle, leading to additional costs for both the contractor and the contracting company. When not correctly managed, there is a transfer of operational and management inefficiencies of the contractor, through the contract price. Contractors also lose in margin: aggressive price negotiations between the contracting company and the contractor could cause a reduction of the contract price, drastically reducing the margin of the contractor.