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Abstract
During the 1990s the contract has become a key feature in the restructuring of the UK public sector. Currently available literature demonstrates awareness that the implementation of contracting must entail new forms of management control and organizational structure which involve new patterns of intra-and extra-organizational relationships. However there is little consideration of the nature of the relationships that are developing between contractors and clients nor the factors that, influence those behavioural processes. This paper reports on research funded by ESRC into contractual relationships in ten local authorities in England. Analysis was undertaken to identify the nature of the contracts and the factors which both clients and contractors felt had led them to develop a particular type of relationship. Finally implications for practice under ‘best value’ are considered.