There are many different types of contracts. Some of the most likely types you may come across are: Contract type Why is it important to manage this? What are you buying? Likely governance approach Purchase At the simplest level, any purchase order is a Defined quantities of goods or Transactional Orders contract for services. You are unlikely to need services, supplied at an agreed a contract management structure for these price, based on the Council’s services, though if you tend to buy this standard terms and conditions. service regularly a formal contract may – need to be put on place. Spot Contracts Whilst not always relying on a regularly Goods or services purchased in Operational or sourced service, these contracts are often set or agreed levels or quantities, Major needed when customer needs arise and need usually at pre-agreed prices, and to be reliable and delivered at required in reaction to contract managers standards such as social care services and calling for the service at – “short public health services. notice” and therefore not always planned purchasing. Framework These agreements are put in place with a Having a framework does not Operational Agreements standard of service, where you have constitute a commitment to or Major and established how much you may want without “Call-off” buy. It does however give your Arrangements providing a commitment to buy those volumes. Service Team opportunity to Frameworks can have multiple providers, and buy services from a defined potentially different sub-services or of providers at prices that “lots”. The only exists when you buy from “contract” are usually pre-agreed, for a the framework agreement (i.e. Call-Off), limited period (usually up to though it is just as important to manage the four years). framework agreement and your relationship with the provider(s). Outsourced Services delivered through contracts of this Your service team may be Service type often began as being delivered receiving services here based on Contracts by the council in the past. Whilst we a previous decision to outsource (including PFI have now outsourced the delivery to a third what once may have been carried contracts) party provider, the overall strategic or even out in-house. statutory responsibilities may remain with the Council. Examples include waste management, highways maintenance, social care etc. Partnering When preparing to manage a contract, your Partnering contracts have been Major Contracts Service Team will have decided that the best used in construction and way to derive high quality services from the maintenance type services, and
There are many different types of contracts. Some of the most likely types you may come across are: Contract type Why is it important to manage this? What are you buying? Likely governance approach Purchase Orders At the simplest level, any purchase order is a contract for services. You are unlikely to need a contract management structure for these services, though if you tend to buy this service regularly – a formal contract may need to be put on place. Defined quantities of goods or services, supplied at an agreed price, based on the Council’s standard terms and conditions. Transactional Spot Contracts Whilst not always relying on a regularly sourced service, these contracts are often needed when customer needs arise and need to be reliable and delivered at required standards – such as social care services and public health services. Goods or services purchased in set or agreed levels or quantities, usually at pre-agreed prices, and in reaction to contract managers calling for the service at “short notice” and therefore not always planned purchasing. Operational or Major Framework Agreements and “Call-off” Arrangements These agreements are put in place with a standard of service, where you have established how much you may want without providing a commitment to buy those volumes. Frameworks can have multiple providers, and potentially different sub-services or “lots”. The “contract” only exists when you buy from the framework agreement (i.e. Call-Off), though it is just as important to manage the framework agreement and your relationship with the provider(s). Having a framework does not constitute a commitment to buy. It does however give your Service Team opportunity to buy services from a defined of providers at prices that are usually pre-agreed, for a limited period (usually up to four years). Operational or Major Outsourced Service Contracts (including PFI contracts) Services delivered through contracts of this type often began as being delivered by the council in the past. Whilst we have now outsourced the delivery to a third party provider, the overall strategic or even statutory responsibilities may remain with the Council. Examples include waste management, highways maintenance, social care etc. Your service team may be receiving services here based on a previous decision to outsource what once may have been carried out in-house. Partnering Contracts When preparing to manage a contract, your Service Team will have decided that the best way to derive high quality services from the Partnering contracts have been used in construction and maintenance type services, and Major
Brent%20Contract%20Management%20Policy.docx