A New Approach to Risk Balanced Contracting

Published by Applied Clinical Trials


In a complex world of global clinical trials where execution is rife with uncertainty, and in which sponsors look to place significant reliance on provider promises, and providers place significant reliance on site investigators and other third parties, how do we approach and achieve a balanced system of risk and reward?

Regardless of being the sponsor or the provider, during the provider selection process we have all at one time or another felt like a victim of circumstances beyond our control. For the sponsor, this may be in the form of promises made by providers during the proposal/bid defense stage where there may be a tendency to oversell. And for the provider, this could be driven by a need to win, compelling you to fit your solution into the sponsor’s demands regardless of probability of success. Rarely does this result in a win-win for anyone and often leads to cost overruns and schedule delays.

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