Should each contract be priced separately and independently?

Pricing each contract separately and independently is essential for maintaining clear accountability and ensuring that the financial implications of the contract are fully understood. This method allows for a precise assessment of each contract's costs, benefits, and risks, facilitating better decision-making and procurement processes.

When each contract is priced on its own, it supports transparency and eliminates any potential confusion that may arise from bundling costs together. It also aids in identifying the specific requirements and expenditures associated with different contracts, allowing the parties involved to allocate resources more effectively.

Additionally, independent pricing helps in conducting more accurate cost analyses, determining whether a contract is fair and reasonable, and setting benchmark pricing that can aid in future contract negotiations. This approach also allows for the assessment of each contract's performance against its own financial metrics, rather than relying on aggregated data that may obscure key insights.

While some organizations might consider pricing contracts differently based on project size or type, the most prudent practice remains that each contract should stand alone in pricing to ensure clarity and precision in contract management and fiscal oversight.