Contract Management in Smaller Councils

Contract Management Transformation Support – Part of the Contract Management Pioneer Programme (CMPP) funded by the Crown Commercial Services. 

Keep it proportional, keep it simple and keep it relevant.

Simon Sowerby, Newcastle-Under Lyme   

When contracts are managed effectively, they can deliver quality services, the best outcomes for residents and even result in savings.  However, effective contract management can be a challenge – particularly for smaller councils.  Much of the publicly available guidance is focused on central government scale contracts or those of a size likely to be managed by larger authorities. This webinar was specifically designed for councils of a smaller nature to review how best to implement a robust approach to contract management whilst keeping it proportional to the size of the organisation. It featured a 4-member panel who provided insights from Merton, Bexley, South Kesteven, and Newcastle Under Lyme.

Invited Panel Members:

London Borough of Merton (LBM) located in southwest London, serves a diverse population of around 215,000 residents. It provides a wide range of services, including housing, education, and environmental management. Omar Faruque from Merton is supporting on transforming the delivery of contract management throughout the organisation, this includes creating quality standardised templates and a review of processes and governance in accordance with the size of  LBM.

Bexley Council is the local authority for the London Borough of Bexley (LBB), responsible for providing services such as education, housing and waste management. The Council focuses on improving infrastructure and community wellbeing.  LBB has a population of around 250,000. The Council’s ambitions centre on fairness, inclusion, early intervention and prevention of local residences. Caroline Allen is currently reviewing the contract management framework for their decentralised approach to managing contract, ensuring that guidance is proportional to the needs of service areas. 

Newcastle-under-Lyme Borough Council is the local authority responsible for services such as recycling and waste collection, housing advice, and planning in the borough of Newcastle-under-Lyme, Staffordshire. The council focuses on enhancing community wellbeing and economic development, with an emphasis on revitalising the town centre and improving local amenities. Simon Sowerby is a main driver for transforming contract management change within the Council, by establishing proportional related guidance based on CMPP.

South Kesteven District Council is a local authority in Lincolnshire, England, responsible for services such as housing, planning, and waste collection. It governs areas including Grantham, Stamford, and Bourne, working to support the community’s development and well-being. Serena Brown is a sustainability and climate officer, looking at how best to implement contract management in relation to Councils commitment to achieving net zero. 

The Challenge  

The need for this webinar was highlighted with the identification of the following challenges:

• Smaller councils often manage contracts of a lower value, with high value contracts being awarded on a less frequent basis. This means a ‘one size fits all’ approach to contract management can lead to inefficiencies or the overburdening of processes and governance on smaller local authorities who do not have the capacity to support these structures.
• Most contract management resource is aimed at larger authorities, creating a guidance gap for smaller councils 
• Resource and budget constraints hinder the ability of smaller councils to invest in comprehensive contract management systems, which are often designed for larger scale contracting authorities.
• The Procurement Act 2023 coming into force, is causing resource and management pressures for small councils, leaving some struggling to implement the necessary changes relating to contract management. In small councils this change management role is frequently the responsibility of an individual or very small team.

Key Takeaways

Important lessons learned and information sharing:

• Perception is crucial:  Contract management skills are transferable and applicable across service areas, with limited resource and development budgets within smaller councils, shifting the perception of training only being for contract management can help support gaining buy in for development. For instance, financial literacy is crucial for managing contracts but also support councils’ key objectives for delivering value for money and cost savings.
• Creative retention strategies: Caroline, from Bexley, highlighted the importance of encouraging secondments and offering professional development as the unique selling point for smaller councils to retain and grow its cohort of skilled staff whilst also sharing valuable skills across the authority.
• Collaborate with neighbouring councils:  Partner with nearby councils on high value or high -risk contracts. This reduces resource strain, mitigates risk and increases a contract managers leverage with suppliers. It also is a way of sharing scarce experience and skills.
• Collect SMART data: Accurate and timely data for informed decision making can support smaller councils with limited resourcing and budget constraints. Think of data collection as an ongoing requirement, rather than a response to a particular issue or problem.
• Keep it proportional: It can be easy to overly complicate tools, guidance, and governance due to publicly available materials designed for larger authorities. It is essential for contract managers to confidently prioritise simplicity and relevance, avoiding unnecessary actions which strain capacity.

Poll Results at a Glance

At the end of the webinar attendees were asked to answer a few simple questions relating to contract management in their own council. The following section identifies the responses that were given.

What is the biggest challenge your council faces in contract management?

How do you maintain council-wide oversight of the main contracts?

How have you developed a proportionate approach to contract management?

Which type of template is most used in your contract management processes?

Special Thanks

Thank you to our panel for participating in sharing insights and information. This webinar was funded by Crown Commercial Service, delivered by Local Partnerships LLP Commercial team and supported by our delivery partners at GCF and MHCLG.

Contact us about a place on Contract Management Pioneer Programme

Due to popular demand, the CMPP programme is currently full. If you’d like to join the waiting list, please email CMPPenquiries@localpartnerships.gov.uk with your council’s name and the number of learners.
 CMPPenquiries@localpartnerships.gov.uk or visit the webpage to find out more