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Why are public sector contracts so important?

Although the idea of public sector contracts may not be particularly glamourous, they are a crucial to the smooth running of our day-to-day lives. When contracts are successful and deliver, they provide services like buses, schools maintenance and rubbish disposal. As such, when they go wrong they are never far from the news; whether it’s a costly IT contract or the more topical collapse of Carillion as you will have seen in the papers recently, they regularly make the headlines.

With the public sector spending £250 billion on commercial suppliers, there will no doubt be an increase in scrutiny on such expensive contracts.

Public sector contracts have also recently become highly political, with the collapse of Carillion, the Labour Party has stated that if they are in government they would strip outsourced contracts from “rogue” private companies. Jeremy Corbyn has promised that private firms with state contracts would be designated “high risk” if they fail to deliver on a range of behaviour from timely payment of suppliers and environmental standards, to pay ratios and tax compliance.

To put into perspective the amount of money that government departments spend on commercial suppliers here are some examples:

  • Department for Work and Pensions – £2.2 billion
  • Department for Education – £7.4 billion
  • Department for Digital, Culture, Media and Sport – £3.7 billion
  • Ministry of Defence – £19.8 billion
  • Department for Business, Energy, and Industrial Strategy – £5.2 billion
  • NHS – £70 billion

(As quoted by the National Audit Office 2017)

Taking all of this into account there is no doubt that public sector organisations will have to prioritise and manage their suppliers and contracts in a much more effective way to ensure greater value for money and more efficient delivery of services.

How can we help?

On the 1st of March and the 24th of May we are running our highly successful contract management course, in Central London. Our expert trainer Martin Murphy has been involved in over £1 billion of successful public sector tenders and contracts, at both sides of the process.

Who is the chair?

Martin Murphy is the Managing Director of SCMG. Martin has been involved in major procurement exercises including managing tenders for public and private sector clients as well as helping suppliers and contractors write winning bids, benchmarking and managing contracts in distress, developing collaborative contracts and working with clients and their suppliers and contractors to improve performance and reduce cost.
SCMG have international experience working with corporations and SMEs across a wide range of different sectors from aerospace and automotive to upstream oil and gas and chemicals and refining as well as central and local government, higher education, health and social care, housing and non-departmental public bodies for supplies, services and works contracts.

Now over to you…

We are running this course in the coming months, to see which dates we have available please check our course page here, or give us a call on 0800 542 9440 or email [email protected].

Do you know about contract management? Do you have any tips or lessons of experience? Are there any other crucial aspects that you would like to share? Tweet us using #UMGTraining @UModernGov, we always love to hear from you.

Do you have a team of staff at your organisation who would benefit from A Guide to Successful Contract Management training? We also offer this course as a highly flexible In-House training session, delivered direct to your organisation on a date to suit you. Contact our In-House Training team on [email protected] to find out more.