Agenda item

To present to committee the contract management framework.

The Senior Policy and Governance Officer introduced the report and explained that there were three documents which created the framework for this report:

• The Statement of Principles – Underpinned the Councils Approach to the Policy.
• The Contract Management Policy – Set out who was responsible for doing what and explained the purpose of Contract Management.
• The contract management procedure – Explained how it was proposed to carry out contract management at the council.

She further informed the Committee that there were 4 appendices attached to the Contract Management Procedure which included:

• Software Contract Renewal Checklist – Set out the minimum requirements for contract managers looking to update their software contracts.
• Contract Management Plan – Set out who is responsible for what. 
• Contract Variation Template – Set out the process to amend a contract.
• Contract Extension Template – Set out the process to extend a contract.

The Senior Policy and Governance Officer then informed the committee their plans for implementing the new framework. She drew the Committees attention to paragraph 3 on page 17 which set out the proposed training plan. She further informed them of the plans to keep the Senior Leadership Team (SLT) and the Leadership Management Team (LMT) up to date with the new quarterly dashboard produced by the Policy and Governance team.

Finally she concluded by explaining that this framework would be coming back to the Committee annually for a review of its progress.

Councillor Pearson questioned paragraph 3 of page 17 of the document pack where it referred to staff training. The Senior Policy and Governance Officer confirmed she would take the comments on board and ensure that the training was mandatory for staff.

In response to questions asked, the Senior Policy and Governance Officer gave the following answers:

• The Policy and Governance Team would provide a second line of defence for contract management where they would be sampling a few of the contracts taken each year and ensure that all procedures were followed, the results of which could be brought back to committee as part of the annual review.
• The training proposed didn’t include an assessment to measure understanding however, she was happy to take this feedback back to the team.

In response to Councillor Pearcy, the Strategic Director of Resources confirmed that once the framework was in place and the second line of defence had begun their checks, they would be looking to see if they needed a system to aid in the completion of those checks. He further informed the Committee that their E-learning platform does allow for the addition of a small test at the end to check the trainees understanding.

In response to Councillor Pearson, the Senior Policy and Governance Officer agreed to clarify the signature required at the bottom of the Contract Variation Form.

Councillor Hurst questioned whether there were any provisions for the complication that accompany large contracts. The Senior Policy and Governance Officer explained that there may be specific amendments which need to be made in regards to specific contracts which is why it was included in the decision for the Committee to agree.

Councillor Kay questioned whether the framework needed to be more specific before being agreed at Committee. The Senior Policy and Governance Officer explained it would be very difficult to allow for every and any contract that the council may take however it was meant as general guidance for Officers to follow.

The Strategic Director of Resources reminded the Committee that should the framework be approved it would come back to Committee annually for feedback to further develop it over time.

Councillor Pearson proposed and Councillor Kay seconded.

Councillor Hurst raised a few concerns, the first regarding inflation and cost supply issues creating potential damage to long term contracts. The second concern was related to the use of that word ‘estimate’ on page 23 of the document pack as it implied a degree of flexibility that shouldn’t be there.

Councillor Pearson questioned why the VAT was included in the total if the council didn’t need to pay it. The Senior Policy and Governance Officer confirmed that as of January 2022 the regulations changed to include VAT, she further confirmed the council will pay VAT initially and then will receive the amount back. It was agreed for the threshold figures to be recalculated minus the VAT and brought back to Committee so as to no have an effect on the contracts.

After being put to a vote, the Motion carried unanimously.