Making savings from contract management

There are many examples of different arrangements put in place by councils to manage their contracts with suppliers effectively. This report has captured and detailed a number of these to help the sector draw on this learning.

The pressing need to find savings means many councils are exploring new ways of commissioning and delivering services. Councils need effective contract management to ensure they maximise both the opportunities and the potential savings these bring.

As councils enter more third-party arrangements to find savings, good contract management becomes increasingly important. It is about more than ensuring suppliers meet their contractual obligations. It can help councils to identify and manage their own and their suppliers’ risks, and achieve savings and continuous improvement throughout the life of the contract.

Elected members have a crucial role to play in setting the strategic direction for commissioning, procurement and contract management. They can ensure their council supports all three functions to obtain the wider community benefits they seek from their spending on third-party organisations.