CPO Advisory Insights: Contract Management

On 1st May 2025 the CPO Advisory met to discuss their first impressions of the Procurement Act and to share their progress and experiences to date.  Attended by over 50 organisations, the CPO Advisory brings together senior procurement processionals to discuss sector-wide challenges, exchange practical experience, and support improved outcomes across public procurement.

Contract Management and how it is applied across organisations is a key topic for the forum.  Local Partnerships, a delivery partner on the Contract Management Pioneer Programme supported by the Crown Commercial Service, were invited to present insights and facilitate a workshop. Drawing on experience from over 90 councils participating in the programme and more than 400 learners enrolled on Cabinet Office-accredited training, they helped frame a discussion around practical approaches being taken to improve contract management across local government.

Three areas of discussion took place under the following themes:

  • The workforce: changing requirements and competencies
  • Measuring the health: creating an overview of how well contracts are delivered
  • Decision making: assurance boards and early decision making linked to pipelines.

We’ve summarised the group’s feedback and their recommendations for success. 

 

Contact Management: Competencies

Forum participants agreed that contract management is not consistently given the focus it warrants — particularly when compared to procurement activity, which often benefits from greater visibility and priority from both officers and elected members. Once contracts are awarded, focus can wane.

One core challenge identified was a lack of clear ownership. Without defined responsibilities, key contracts risk being inconsistently managed. It was recognised that councils need to be very clear who is responsible and accountable, with contract management embedded in people’s job descriptions. The importance of having Senior Responsible Officers (SROs) responsible for contract management was recognised as being crucial.

It was noted that the churn of senior officers within local government in recent years has had an   impact on effective management of key contracts with contract management responsibility often being changed several times over a few years.

Participants also reflected on how the scope of contract management has expanded over recent years with additional requirements in relation to areas such as sustainability and social value, yet training for contract managers has not necessarily kept up with the pace of change. In response, some councils have strengthened their contract management function by making training mandatory for all contract managers.

There continues to be debate about the relative pros and cons of having a centralised versus a devolved contract management function. While a devolved approach is most commonly used in local government, one of the downsides is that contract management can sometimes be perceived as a ‘bolt on’ activity to people’s day-to-day jobs. One recommendation to address that issue is to have a hybrid function with contract management hubs located within directorates.

Recommendation: Clarifying ownership, mandating training, and creating fit-for-purpose delivery models are key steps in strengthening contract management capacity.

 

Contract Management: Measuring the Health

The group explored how local authorities can measure contract performance, creating a holistic view across a complex organisation. This single picture is challenging to achieve when contract management is a largely devolved function operated by different directorates with a diverse range of services. However, it is essential for the leadership to understand pressure points, create connections between services and suppliers, and learn from both success and failure.

Using data based on the following metrics helps create an evidence base that can form a visual dashboard:

Profiling – value, tiering, direct awards, directorate profiles, suppliers, invoices paid

Performance – RAG rating, KPI delivery and social value contribution, spend on track

Added value – innovation, market development, net zero, local economy

Compliance – roles, monitoring, risk, H&S and other duties.

However, some key points raised were:

  • That data does not always tell the whole story, and some services have long-term impacts that are hard to measure through statistics
  • Social value should be monitored regularly alongside KPIs as an indicator of deliverables
  • Compliance in meeting the council’s standards for contract management can drive consistency; however, it needs to be clear what the expectations are (usefully outlined in a contract management framework)
  • The need to use readily available data to create insights into contract management; otherwise, there is a risk of spending time monitoring rather than delivering a contract.

On the former point, it was emphasised that tiering is important to ensure proportionality in how contracts are managed, monitored, and reported on. The source of data needs to be accurate and reliable, and where there are self-assessments, these need to be audited or be subject to spot-checking.

Also, while there is often a negative focus on red or amber-rated indicators, this should be turned around to understand areas of focus (rather than blame). This links to the positive use of the assurance board as a place to find solutions, troubleshoot problems, and create connections between contracts.

Recommendation: Build practical, proportional measures that uses data to inform action, create connections, and support learning across contracts.

 

Contract Management: Assurance boards

The role of contract management assurance boards in supporting better decision-making was a focus of the third workshop theme. While participants widely agreed on their value, they reflected on the balance between formality and meaningful engagement. 

Terminology can have a significant impact. One participant shared that their equivalent of a Board was termed an “Assurance Group”. Others echoed this point, noting that positioning the group explicitly around contract management—rather than subsuming it under procurement—signals its importance and clarifies its purpose. 

Culture matters. Some boards are perceived as high-pressure forums where individuals are put “in the hot seat.” Participants advocated instead for boards that encourage openness, allow issues to be raised early, and focus on problem-solving. When done well, assurance boards can build trust, clarify ownership, and support faster, more confident decisions. 

Stakeholder involvement in an assurance board was highlighted as critical success factor. Participants highlighted examples of the importance of securing buy in from a vocal and engaged Section 151 Officer.  Equally, it was agreed that it is important to include more operational, and junior contract managers to ensure the board is holistic, inclusive and grounded and promotes a whole-organisation approach to contract management. All service areas have a role in making contract management effective, and the diversity of voices at the table can lead to more balanced and practical decisions.  

Local Partnerships shared with the group a positive example, whereby support was offered in setting up a contract management assurance board, by providing tailored tools, templates and guidance. Ultimately, assurance boards should be fit for purpose to face the complexities in varying contracts, whilst not being overly burdensome. The goal is to embed practical governance that facilitates sound decision making rather than adding unnecessary layers of oversight.  

Recommendation: Create inclusive, solution-focused assurance boards that foster trust, promote learning, and drive contract delivery.

 

Closing Reflections

The forum’s discussions reflect a maturing approach to contract management across local government—one that recognises its strategic importance, operational complexity, and potential to drive improved public outcomes.

While practices differ between organisations, a number of shared enablers are emerging:

  • Clarity of roles and ownership
  • Investment in skills and training
  • Proportional use of data and insight
  • Thoughtful governance that supports, not hinders, delivery

By learning from each other’s successes and challenges, the sector can continue to evolve how contracts are managed—ensuring public value is delivered not just at the point of procurement, but throughout the life of the contract.

 

Further information

Local Partnerships resources page for the Contract Management Pioneer Programme contains a range of tools, templates and guidance specifically for local authorities: CMPP Resources Page.

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