In an era of economic uncertainty, the way public sector organisations manage their contracts has never been more critical. With pressures mounting on both public budgets and private sector suppliers, effective contract management offers a pathway to achieving better outcomes, delivering value for money, and supporting sustainable economic growth.
Unfortunately, and far too often, good contract management is viewed as an administrative function, yet it is fundamental to place-shaping, enabling local authorities to deliver the infrastructure and improvements that communities need – whilst maximising every pound spent.
When contracts are managed proactively, organisations can identify opportunities for innovation, manage risks before they escalate, and build stronger supply chain relationships. NEC contracts are specifically designed to support this proactive style, with built-in mechanisms that encourage early communication and problem-solving.
The economic landscape also demands contracts that can respond to changing circumstances. Rigid, adversarial approaches often lock parties into positions that serve neither side well when unexpected challenges arise.
Alternatively, NEC contracts provide clear processes for managing change, transparent communication channels, and early warning mechanisms – all contributing to contracts that can adapt whilst maintaining their core objectives. This protects value for the public sector whilst providing contractors with the certainty they need to invest in delivery.
Value for money requires considering whole-life costs, quality of delivery, risk management, and broader community benefits. When public bodies and contractors work as genuine partners, sharing information openly and solving problems together – projects are more likely to finish on time and budget.
The collaborative ethos at the heart of NEC contracts supports this partnership approach, with clear roles, responsibilities, and communication requirements that build trust between parties. This is also why investing in contract management capability represents one of the most effective uses of public sector resources. Well-trained contract managers can identify savings, prevent disputes, and ensure every project contributes to broader strategic objectives.
Finally, whatever economic conditions emerge, good contract management remains essential to public sector success. The contracts we manage today shape the places we build for tomorrow – making contract management not just good governance, but an investment in sustainable economic growth.
Rekha Thawrani OBE is Global Director of NEC Contracts
