Buying Better
Outcomes
Workshop 4
Equalities and Contract Management
If you do not take it seriously, why should the supplier?
Managing the contract effectively
Effective contract management is crucial to delivering
the equality benefits we are looking for.
Consider how equalities and diversity will affect your or
the contract manager’s ability to manage the contracts in
terms of:
•Financial and management controls including risk and
change management
•Your ability to manage and build a relationship with
your supplier, clearly defining roles and responsibilities
Managing the contract effectively
•Managing performance and dealing with shortfalls in
expectation
•The potential for continuous improvement throughout
the course of the contract and/or to voluntarily improve
across their whole organisation
•Having an effective communication plan to point out
poor performance against all objectives, including
equalities criteria.
Managing the contract effectively
• Ensure you will have the level of control you need by
creating the right processes during the procurement
process
• Make sure whoever is going to manage the contract is
kept involved and informed from the start of the process
• Understand the technicalities of the contract - you can
then control the direction the provider may take you in
• Work proactively with your supplier in order to achieve
the equality outcomes as well as the other objectives
Managing the contract effectively
• Ensure they are conversant with your business, technical
processes and policies, including equalities
• Keep suppliers updated with regard to your corporate
equality priorities as they evolve and be aware of whether
or not their approach is in line with them
• Ensure that your contract management plan and
communication reporting arrangements include the
relevant equalities considerations.
Performance Management
• Clauses such as those for equality and diversity can easily
be overlooked in the rough and tumble of contract
delivery
• Where relevant, it is essential to include equality
requirements into rigorous performance monitoring
and management arrangements, including appropriate
performance indicators
• This may require regular and systematic management
which is transparent and agreed with the supplier
Performance Management
• It may be helpful to provide appropriate training for
those who have to manage the contract or are involved
on a day to day basis with the supplier’s staff
• You may involve others and seek their opinions e.g.
users, trade unions, other partners etc.
• Nip any problems in the bud - do not allow them to fester
• If you do not take it seriously, why should the supplier?
Monitoring
• Needs to be agreed with the supplier from the start
• Other stakeholders such as customer or communities
of interest should be made aware of the arrangements
• Core equality requirements should be detailed in the
specification.
• Needs to be clearly defined and achievable, including
targets and performance indicators
Level of contract management related to risk and spend
High Risk / Low Cost
Develop special and specific
terms
and conditions
Security
of Supply
Close monitoring
High Risk / High Cost
Detailed and demanding
monitoring, controls
and schedules
Strategic fit
£40bn
RISK
Low Risk / High Cost
Low Risk / Low Cost
Framework Contract
Terms and conditions
Compliance with pre arranged
with order, goods received
terms and conditions
/ invoices. Audit trail
Will still require monitoring
EXPENDITURE
Monitoring
• You need to detail those areas of monitoring where
equalities is important e.g. delivery arrangements
and compliance with specification
• It should be timely and compatible with other requirements
• Remember, if challenged, you need to be able to
demonstrate compliance with the equality duty what information will you need from the supplier?
• Have a clear escalation and arbitration procedure for
dispute resolution
End contract /termination
• Ensure proper arrangements are in place to deal with
end of contract requirements with regard to equalities
and transition to future contracts, particularly with
regard to staffing matters.
• Arrangements for early termination should be detailed
in the contract. Taking legal action should be a last resort
and only where it is very serious.
• Are there any lessons to be learnt to apply to future
contracts and equality priorities?
End contract /termination
• Could future specifications be improved?
Was there enough scope for real benefits to be achieved?
• Would different contract terms and conditions have
been more effective?
• Could performance management have been more
effective?
• Did you play your role fully in delivering this aspect of the
contract?
Managing the Supply Chain
• You may need to actively manage equality matters
further down your supply chain.
• A lot of good work carried out with the main supplier
can be soon undone if sub contractors are not aware
of their responsibilities and legal position.
• How do the various elements upstream and down
stream of the supply chain impact on equality?
Managing the Supply Chain
• Are there improvements or indeed basic requirements
that need to addressed at the different levels and
linkages of the supply chain? Should you be using
contract clauses to impose equality requirements
on sub contractors?
• Do other organisations and stakeholders involved
understand their roles?
Exercise
• How would you ensure that the equalities element of
the contract is effectively managed and monitored?
• What sort of performance measures /indicators might
you use?