5.1 Governments avoid entering major contracts or undertakings, including new grants agreements, during the caretaker period. When determining whether a contract or undertaking qualifies as ‘major’, agencies should consider:

• the dollar value of the commitment
• whether the commitment is a routine matter of administration
• whether the commitment implements or entrenches a policy, program or administrative structure which is politically contentious
• if the commitment requires ministerial approval.

5.2 If it is not possible to defer the commitment until after the caretaker period, for legal, commercial or other reasons, there are a number of options:

• the minister could consult the relevant Opposition spokesperson regarding the commitment (see section 3.3 for further information).
• agencies could also explain the implications of the caretaker period to the contractor or grantee and ensure that contracts include clauses providing for termination in the event that an incoming government does not wish to proceed.
• similarly, in the case of tenders, agencies should communicate with potential tenderers about the implications of the caretaker period and the possibility that the tender might not be completed.