Contract management
A significant level of the organisation’s budget is spent on external third-party service providers. The reliance and dependency on external market solutions has increased and therefore, the performance of these supply markets is vital to the Council in achieving its strategic aims both in terms of service quality and managing a balanced budget.
Public Sector contracts are increasing in commercial complexity and size. Managing commercial relationships is a vital competence to ensure that quality, service and cost outcomes are met or exceeded.
Contract management can be considered successful when:
- the arrangements for service delivery continue to be satisfactory to both parties, and the expected business benefits and value for money are being achieved or exceeded;
- the supplier is efficient, co-operative and responsive;
- the organisation understands its obligations under the contract;
- there are no surprises;
- there are no disputes;
- professional and objective discussions over changes and issues are straightforward and easily managed; and
- efficiencies are being realised.
Contract management should result in contract procedure and process improvements and should ensure that the contracts and therefore the services/goods/works, are delivered to the required standards, provide value for money, enhances service delivery to end users, proactively identifies and manages any risks e.g., which may impact on a supplier’s service delivery / fulfilment of the contract requirements, improve and develop contract and supplier performance across the Council etc.
A consistent approach will maximise efficiencies and promote added value across the supply base, appropriately influence supplier activity and decisions, improve value for money over and above cost savings, and ensure the contract is effectively administered, supporting change management where necessary.
Procurement Services have developed a Contract Management Framework to support responsible officers charged with managing contracts within their service area. The Framework draws upon existing good practice, national guidance and tailored to meet Coventry City Council’s specific needs.
Furthermore, Procurement Services have developed a central repository for Key Performance Indicator scores across procured contracts to provide oversight of contractual performance and to help inform procurement and contract management decisions through a data-led approach, in addition to the legislative requirements regarding publication of contractual performance.
We recognise the need to continue to improve effectiveness in contract and supplier management to ensure the Council maximises opportunities for additional cost savings and non-financial benefits. Procurement Services is committed to maximising the use of digital tools to provide further improvements to our contract management.