Local Government Academy: Getting Contracts Right in Local Government - Three Practical Takeaways

In our recent Local Government Academy session, we looked at how procurement, legal and contract management disciplines work together to support successful contracting outcomes. For those who attended (and those who could not), here are three practical takeaways for local authority legal and procurement teams.

1. Focus on the terms that drive success

In many procurements, significant time is spent negotiating legal protections, often driven by supplier attempts to reallocate commercial risk.

Whilst such negotiation around risk allocation is time well spent, experience shows that in addition a key driver of success in goods and services contracts is clarity about what is required and how it will be delivered.

In practice, important clauses include:

• scope of work (services);
• quality and acceptance standards (goods);
• delivery obligations (goods);
• pricing / payment;
• change control.

Key takeaway:

Treat your core commercial and operational terms as your anchor.

The clearer these terms are, the less scope there is for dispute during performance. If supplier negotiations materially dilute them, authorities should consider whether the requirement can still be delivered properly and, if not, whether the contract should proceed at all.

2. Boilerplate clauses matter more than you think

“Boilerplate” is often perceived as standard wording and low risk. In practice, it is frequently where contracts stand or fall when tested.

For local authorities, boilerplate clauses must reflect the wider public law framework, including procurement law. While many boilerplate clauses apply in both private and public sector contracts, specific risks and the wording required to address them are shaped by the regulatory environment and sector in which the authority operates.

Common pressure points include:

• FOI and confidentiality;
• notices (valid termination depends on them);
• dispute resolution mechanisms;
• assignment and subcontracting controls (supply chain management).

Key takeaway:

Give boilerplate the same level of scrutiny as commercial terms (and be careful about what supplier deletions or edits you accept).

Small drafting changes can have significant consequences, particularly where statutory obligations cannot be contracted out of.

3. Contract management is where value is delivered

The procurement process sets out your roadmap to contract award. Performance, compliance, and value are realised afterwards in the contract documentation.

Familiar challenges we see include:

• lack of ownership post-award;
• missed key dates or renewal points;
• undocumented changes;
• under utilisation of contractual rights.

Key takeaway:

Treat contract management as a structured function, not an afterthought.

At a minimum:

• maintain a live contract register;
• assign clear ownership;
• monitor performance against KPIs;
• actively use variation / change control, escalation, and enforcement mechanisms;
• monitor contract lifecycle to ensure appropriate steps are taken prior to renewal.

Final thought

Successful outcomes depend on close collaboration between procurement, commercial and legal teams. A compliant procurement process is essential, but so is getting the contract right from the outset. In particular, proposed contract terms should be considered early in the procurement exercise and issued with the tender pack.

Brodies Contacts

If you would like to discuss any of the issues covered in this article or would like support reviewing your contract templates or procurement approach, please contact our public sector commercial team.