Contract management has long been regarded as both an art and a science, integral to the commercial success of any enterprise. Historically, the focus has been on refining the process of procurement to ensure better buying practices. However, with the advent of the new Procurement Act, particularly within the public sector, there is a renewed emphasis on the entire lifecycle of a contract. This shift promises to enhance procurement responsibilities far beyond the mere awarding of contracts, ensuring that contracts are optimally calibrated from the outset for the best possible outcomes as Steve Novetsky, Commercial Specialist, Apira discusses below.

Cash flow is the lifeblood of any successful business, and the public sector plays a pivotal role in this ecosystem. By facilitating timely payments to suppliers and diligently monitoring supplier performance, public sector entities can help maintain the viability of businesses, especially small and medium-sized enterprises (SMEs), while also safeguarding the public purse. Robust performance monitoring not only incentivises suppliers to meet their contractual obligations but also minimises the risk of fraud. Payments will be contingent upon the delivery of goods and services meeting agreed performance metrics, rather than merely the correct presentation of invoices. This approach ensures that public funds are spent effectively and that suppliers remain accountable throughout the contract term.

The Procurement Act introduces several key provisions aimed at strengthening contract management. For contracts exceeding £5 million in value, there will be mandatory Key Performance Indicators (KPIs) and an obligation to publish supplier performance against these KPIs. This transparency will provide greater clarity on how contracts are expected to be managed and operated, making contract management an integral part of the procurement process rather than an afterthought. By embedding these practices early, organisations can ensure that contracts are designed to deliver value and meet strategic objectives from the very beginning.

At Apira, we are uniquely positioned to leverage our extensive experience in both procurement and contract management. Over the years, we have demonstrated our ability to deliver successful contracts across various sectors, with a notable track record in the UK healthcare sector. Our expertise ensures that contracts not only meet procurement standards but also deliver tangible benefits and outcomes.

The true measure of procurement success lies not in the procurement process itself but in the performance of the contract once it is in place. A well-managed contract is one that delivers on its promises, achieves its objectives, and provides value for money. At Apira, we believe in the importance of effective contract design and management, and we are committed to helping organisations achieve their goals through our comprehensive procurement and contract management services.

If you are interested in learning more about how Apira can support your organisation in delivering successful contract outcomes, please do not hesitate to contact us. We would be delighted to discuss how our expertise can help you achieve your procurement objectives. Please contact Rory Dennis, Director of Growth at rory.dennis@apira.co.uk

About the author –

Steve Novetsky, a specialist in Apira’s Commercial Services team, has worked in public sector procurement since 1999. He began his career at London Underground, where he led all Marketing & PR procurements for the Tube. In 2002, Steve earned his CIPS Diploma, complementing his Economics degree obtained in 1996. His career trajectory includes interim assignments at Defra, the Ministry of Justice, the Big Lottery Fund, the Law Society, various local authorities, and, since 2013, ICT procurements for NHS Trusts and organisations including NHS Digital and NHS England. Steve’s extensive experience and deep understanding of the procurement landscape make him an asset in the field of contract management.

Opinion – Contract Management: A New Era Under the Procurement Act

About the author –