Title

BUSINESS

There's more than just economics to a contract's value

Procurement can and must be based on more than just financial value, writes Mike Britch.

A recent report by the Centre for Local Economic Strategies (CLES) has suggested that local authorities should award contracts based on the social value to the community instead of only considering budgets and timeframes. And so say all of us. Procurement can and must be based on more than just financial value – this is an approach that Norse Group takes both to our own purchasing of goods and services and to the bids that we make to supply local authorities.

Naturally, cost, compliance and risk will always be key considerations in procurement. Ignoring the economics altogether would be as irresponsible to local residents as making decisions on a purely financial basis. But buying decisions have the power to deliver substantial benefits to local businesses, local communities and the local economy, so this has to be a factor.

When the Norse Group tenders for contracts with local authorities we are clear to highlight what we can deliver for communities. Our social value policy sets out how we deliver services in ways that produce wider benefit to the community and capture longer-term savings for our clients and partners. Social value is at the heart of service delivery and built into the decision-making process of every operation. We draw up an agreement with each partner, ensuring that we understand the specific local needs and deliver projects that are aligned with this. Procurement decisions are made considering the percentage of local spend and providing opportunities for SMEs. Recruitment considers targeting vulnerable groups, who might not access traditional recruitment methods.

Our commitment to being a responsible business, through what we call The Norse Way, has a significant impact on our ability to successfully win and deliver contracts, and so we have a responsibility to drive this through our own supply chain. Adopting a progressive approach to procurement is a win-win for client, supplier and, most importantly, communities, so I applaud the CLES report and the work by Manchester City Council on which it was based, and urge public and private sector organisations to follow suit.

BUSINESS

Turning the dial on growth

By Mark Bretton | 01 May 2026

Delivering local growth has just got a lot harder, says Mark Bretton. But he believes Business Board leaders can bring value to local authorities, bypass the...

BUSINESS

Guiding new councillors on the right path

By Sue Bearman | 30 April 2026

With the sector gearing up on 7 May for the biggest set of elections since the 2024 General Election, Claire Ward and Sue Bearman set out the practical steps...

BUSINESS

Making the shift

By Christine Marshall | 30 April 2026

As the sector gears up for a new wave of unitarisation, Christine Marshall reflects on the move from districts to a unitary council as executive director for...

BUSINESS

Libraries as a strategic delivery partner for local government

By Rebecca Gediking | 30 April 2026

Rebecca Gediking looks at how GLL is helping councils deliver more with existing services.

Popular articles by Mike Britch