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The economist Ronald Coase, for instance, argued in the 1930s that firms existed to reduce the transaction costs involved in doing things in particular, the cost of finding business partners, making contracts with them and monitoring the contracts thereafter.Faster, cheaper telecommunications and the emergence of the internet have dramatically reduced such transaction costs.
Wasn't anyone monitoring the contracts?
Indeed when NHS commissioners appeared unwilling to engage corporate 'independent sector treatment centres' (now re-named 'NHS Treatment Centres'), the Department of Health commissioned them itself, with local commissioning bodies only subsequently implementing and monitoring the contracts [ 23].
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"I totally reject the suggestion that we haven't had a grip on this because we've been monitoring the contract carefully.
The powerful parliamentary public accounts committee summoned Serco and the NHS body responsible for commissioning them, the Cornwall primary care trust, and gave them the roasting they deserved for a culture of "lying and cheating" and for "shocking" inadequacies in writing and monitoring the contract.
PSG and Real Madrid are both monitoring the contract talks of Liverpool's 19-year-old winger Raheem Sterling.
A state audit last July revealed that the Texas Education Agency "lacks adequate processes for monitoring the contract".
Additionally, both PCT and APPC staff again highlighted the issue of time taken in monitoring the contract.
In Site 2 these teams overlapped, ensuring that those monitoring the contract were aware of the intentions behind individual clauses.
This meant that the staff responsible for monitoring the contract did not know what the thinking behind the contract provisions had been, and did not understand some of the KPIs.
In Site 1 the ongoing need for renegotiation was further complicated by the fact that a different team was involved in monitoring the contract from that which undertook the procurement.
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CEO of Professional Science Editing for Scientists @ prosciediting.com