With an increasing emphasis on commissioning models, successful contracting strategy has a greater influence on the efficiency and profitability of any organisation. Whilst an understanding of procurement processes is key to compliance, securing optimum value is about ensuring the supply chain strategy drives organisational value and that contract management structures are appropriate.
Solutions to balance competing priorities
Every organisation has different attitudes to risk. Some would prefer to transfer risk in return for increased financial certainty. Others may prefer to retain risk to secure greater transparency in actual costs. Whilst our CIPS accredited procurement specialists have an in depth knowledge of procurement processes and options in the public and private sectors, good procurement is not about process. We work closely with clients to understand their objectives and advise them on the optimum contracting strategy for them, based on:
- A detailed understanding of their organisations, and the environments in which they operate
- A detailed understand of the supply chain, and its appetite for risk in the provision of services
For many clients, linking payment in whole or part to outcomes offers a solution that best responds to stakeholder concerns. Our team has extensive experience of developing Key Performance Indicators and Performance & Payment Regimes that drive high standards of supplier performance without resorting to unwieldy contracts and overly punitive commercial arrangements. We are happy to challenge delivery norms where opportunity is identified to do things better.
Successful partnering relies on the creation of the right environment: one in which both parties acknowledge the needs of the other, whether this is to make a profit, achieve a deliverable or meet a deadline. Whether putting arrangements in place, or acting as ‘honest broker’ between partners, Gleeds has the skills and expertise to make partnering arrangements work successfully.
Contract management organisations need to respond properly to the contracts they manage. Complex arrangements like PFI projects demand higher levels of contract management to ensure proper validation and scrutiny exists. The Gleeds team has designed and implemented contract management organisations for significant projects, programmes and frameworks that ensure effective risk and financial management is secured without creating overly elaborate management structures.