Embedding social value into public sector contracts hasn’t been without its challenges. Buyers have to juggle value-for-money with social returns and have to quantify the full impact of every supplier they consider. It means more data, greater responsibilities on staff, and higher stakes when it comes to awarding contracts.
And this challenge doesn’t end when the contract is signed and work gets underway. What happens in cases where suppliers underdeliver on social value? Or when projects don’t achieve as much value as was promised at tender? It’s a problem we’re sure you’d like to nip in the bud as soon as possible.
The best way to avoid disappointment at the close of a contract is to ensure reliable contract management throughout.
By strengthening your contract management, you ensure that all projects meet – or even exceed – their commitments. That every contract results in tangible value and works to improve the social, environmental, and economic wellbeing of local communities. But how can your team make this level of contract management a reality?
Mutual understanding from the get-go
The foundation for strong contract management starts long before you choose who to award the contract to. Or even before any bids start rolling in.
Pre-market engagement ensures all potential suppliers are on the same page about what social value means to you.
It’s about establishing a deeper understanding of the priorities of your local area and the outcomes you hope to achieve. And then conveying that to suppliers. This means they can create more relevant, realistic bids that will be less likely to result in unmet promises.
So make the time to communicate with potential suppliers. Host open sessions – virtual or in-person – where you discuss your goals, strategies, and the role you expect suppliers to play. Share your social value statement and encourage suppliers to work with you to reach your targets.
Similarly, it’s up to you to communicate early on that you take social value seriously. And that it will be a contractual obligation you expect all suppliers to meet. By setting these expectations before awarding any contracts, you minimise the chances of suppliers inflating their bids or viewing social value as a box-ticking exercise.
Embed social value into the contract
One of the easiest ways to keep suppliers accountable to their commitments is to embed them into their contract. Clarify expectations about how you’ll monitor suppliers throughout the contract.
How often will you collect data? Will you have scheduled monthly meetings to discuss progress? What KPIs will you be measuring? What’s the minimum rate of progress you expect? And how will you tackle any early signs of falling behind on achieving your targets? Put all of this information into the contract itself, so there’s no room for miscommunication or any grey areas open to exploitation.
💡Top tip – Frequent check-ins and face-to-face meetings ensure social value remains at the forefront of everyone’s minds. They will also allow for better communication, where suppliers can share any problems or challenges they face. And they help to address challenges as and when they arise, leading to a much quicker resolution.
Tools for quick and easy visualisation
When it comes to social value, what’s measured is managed. It’s no good realising a supplier isn’t meeting their social value promises when a project is drawing to a close. At this point, there’s little to nothing you can do to rectify the situation.
Instead, you want consistent and reliable visualisation of your projects at all times. At any given moment, your team should be able to get an overview of a supplier’s progress towards their commitments.
This usually requires a lot of data entry to manage and it quickly eats into your staff’s time and resources if done manually. And you run the risk of having to wait days or weeks for suppliers to capture and send over the relevant insights. By which point, they might already be out of date. So try to lean on technology wherever possible.
Invest in tools that automate a lot of the fiddly data collection and analysis. One platform that can take any kind of data and turn it into something tangible. The easier it is for your staff to visualise your suppliers’ progress, the quicker they can intervene if targets aren’t being met.
Robust contract management allows you to hold all suppliers accountable to the commitments made at tender. When done right, it will significantly reduce your chances of having projects that underdeliver on social value. If you’re unsure where to start, these tips should point you in the right direction.
Impact is an easy-to-use social value platform that simplifies the entire tender process. With real-time bid evaluation, automated conversions, and ongoing contract management, we make it easy to maximise social value across all your projects. To find out more, schedule a demo or get in touch with the team on 0161 532 4752.