A year into the Procurement Act, we are beginning to understand its practical implications. Much attention has rightly focused on the legislation and the priorities set out in the National Procurement Policy Statement (NPPS), but as with most things success ultimately depends on delivery. What we do after contracts are signed is what truly determines outcomes.
Historically, the public sector has placed significant emphasis on commissioning. While commissioning is critical, its value is quickly eroded if contract and supplier performance are not effectively monitored. Research from the World Commerce and Contracting Association shows that organisations can lose an average of 8.6% of contract value over a contract's lifetime due to weak management. This is a substantial loss, especially given the pressure on public fi nances.
Procurement shapes more than service delivery; it influences social and economic outcomes too. Working with local suppliers can create jobs, strengthen supply chains, and support fair pay. But these benefits only materialise if contracts are delivered as intended. Local government reorganisation, the fair funding settlement and continued increases in demand alongside the Procurement Act, mean that procurement and contract managers now operate in an increasingly demanding environment. Accurate tracking of delivery and outcomes has therefore never been more essential.
This is why contract management sits at the heart of effective procurement but resources are stretched. There is help out there, managed procurement services can support authorities to transform their procurement processes compliantly, achieve better outcomes and build wider social and economic value from their contracts.
There are also tools such as our Lifecycle Index and OPTIMiSe platform that help contract managers assess whether suppliers are delivering against contract requirements.
Services like ours provide transparent, compliant performance data which can highlight if early intervention is needed and enhanced reporting ensures KPIs and social value commitments are monitored throughout the contract lifecycle.
Our recent research highlighted a gap between procurement teams and senior leaders in understanding how to deliver the transformational ambitions of the Procurement Act. With the right tools and data, contract management can ensure the public pound delivers the value and impact communities deserve.
James Drury is Commercial Director at Commercial Services Group
