The BSC typically uses four quadrants. For contract management, these can be adapted to suit the commodity/service as required.  The BSC in the Procurement Journey provides some standard (and recommended) standard metrics, which can be supplemented as required:

Guidance Notes

Monitor cost-effectiveness while ensuring quality standards are met. Use reporting to track financial performance.

Ensure that the contract delivers intended public service outcomes. Stakeholder engagement and feedback should be documented.

Track compliance with contractual terms, Scottish public sector policies, and risk management plans.

Encourage proactive improvement from suppliers and internal teams. Document lessons learned and share across departments.

Below are some suggestions of the steps you can take to implement your BSC:

1. Define Objectives and Outcomes
   • Identify the strategic goals of the contract (e.g., service quality, cost savings, compliance).
   • Align these goals with the organisation’s priorities and Scottish public sector standards.
2. Select Metrics and KPIs
   • Use a mix of quantitative and qualitative indicators.
   • Ensure metrics are measurable, relevant, and achievable.
3. Set Targets and Thresholds
   • Define what constitutes acceptable, satisfactory, and unsatisfactory performance.
   • Include thresholds for medium and high-risk contracts that trigger escalation.
4. Data Collection and Monitoring
   • Determine how data will be collected (e.g. supplier reports, management, information, surveys).
   • Schedule regular performance reviews, at least quarterly for medium-risk, monthly or bi-monthly for high-risk contracts.
5. Analysis and Reporting
   • Compare actual performance against targets.
   • Identify trends, risks, and areas for improvement.
   • Report findings to relevant governance boards or senior managers.
6. Action and Improvement
   • Implement corrective actions when targets are not met.
   • Encourage suppliers to adopt best practices and continuous improvement initiatives.
   • Document lessons learned for future contracts.

• Medium to High-Risk Contracts: Require closer monitoring with detailed KPIs and thresholds.
• Data Quality: Ensure that metrics are based on accurate, timely, and verifiable data.
• Escalation: Establish clear escalation routes for non-performance or critical risks.
• Governance: Ensure compliance with the Scottish Public Finance Manual (SPFM) and other relevant guidance.

Quality

Cost (Financial Performance & Value for Money)

Sustainability (Social, Environmental, Fair Work)

Service (Performance, Responsiveness, Delivery)

There is a Balanced Scorecard available for you to use at the bottom of this page. 

The scorecard can be issued to multiple users of the contract and responses compiled to use as discussion point during the supplier review meetings.

The Key Performance Indicators (KPIs) can be edited to suit the commodity/service area.  To support consistency and objectivity it’s important to define and communicate clearly what thresholds apply for Red, Amber or Green classification. e.g. Green is 97% of deliveries on time, Amber is 92% of deliveries on time and Red is <92% of deliveries on time.

The fundamental purpose of Contract and Supplier Management is to ensure that:

• Suppliers meet their contractual obligations for the duration of the contract
• The contract's requirements are successfully delivered. This includes any special contract performance conditions included in the competition documentation and related to the contract subject-matter.  This may cover economic, innovation-related, environmental, social or employment-related conditions.
• Anyone engaged in managing suppliers must read and fully understand the contract terms and conditions. This will ensure they are not at a disadvantage should any issues arise.

It is essential that your Organisation’s Contract Manager/ Contract Management Officer is engaged from the Develop Strategy stage early in the process and participates in the development of the terms & conditions.

The Balanced Scorecard can be used for managing and monitoring contract and supplier performance. A template for you to use can be found in the Balanced Scorecard station

The scorecard can be issued to multiple users of the contract and responses compiled to use as discussion point during the supplier review meetings.

The Key Performance Indicators (KPIs) can be edited to suit the commodity/service area.

Performance Monitoring

• KPIs & SLAs – Define measurable Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) in the contract.
• Regular Reviews – Monthly or quarterly reviews depending on risk level.
• Benchmarking – Compare supplier performance against industry or previous contract benchmarks.

KPIs provide a mechanism to measure the four quadrants of the balanced scorecard (Quality, Cost, Sustainability, and Service). KPIs help organisations understand how well they and/or their suppliers are performing against their strategic goals and objectives.

This ensures suppliers meet agreed KPI’s and service levels. Early detection of under-performance allows corrective actions, reducing the chance of contract failure.

Financial Monitoring

• Budget Compliance – Track spend against budget and forecast future costs. Compare budget vs actual spend; flag deviations early.
• Cost Variance Analysis – Investigate deviations or unexpected cost increases.
• Value for Money Assessment – Assess whether the contract continues to deliver expected outcomes.
• Financial Monitoring: Compare budget vs actual spend; flag deviations early.

Risk Monitoring

There are several types of risk to take into consideration:

• Financial risk: Medium/high-risk contracts often involve larger sums of public money. Monitoring ensures funds are spent appropriately and cost overruns are identified early.
• Operational risk: These contracts might support critical public services. Monitoring ensures service delivery remains uninterrupted and meets agreed standards.
• Reputational risk: Failure in these contracts can damage public trust in government bodies. Regular reporting helps detect issues before they escalate.

The following activities can help you manage risk in CSM:

Reporting 

Frequency: Monthly or quarterly, depending on contract risk level.

Content:

• Performance against KPIs
• Financial status (budget vs actual)
• Risk updates and mitigation actions
• Issues or disputes and resolutions
• Forecasts and recommendations for corrective action

Audience: Contract owner, senior management, procurement team, and auditors as appropriate.

Reporting Channels

• Internal: Contract Owner → Contract Manager → Senior Management/Board
• External (if applicable):Scottish Government, stakeholders

Escalation & Issue Management 

• Define clear thresholds for escalation (e.g., KPI < 80%, spend > budget by 10%).
• Maintain issues log with actions, owners, and resolution deadlines.
• Issue & Escalation Tracking: Identify and record non-compliance, delays, or risks; escalate promptly.
• Use formal escalation procedures for unresolved critical issues to senior management or procurement governance boards.

Managing Continuous Improvement 

• Conduct post-contract evaluations to identify .lessons learned
• Integrate monitoring insights into future procurement strategies.
• Encourage supplier development plans for performance improvement.
• Monitoring generates insights into supplier performance and procurement practices.
• Lessons learned can improve future tendering, risk assessment, and contract management practices.

Financial Control and Value for Money

• Helps ensure efficient use of public funds.
• Regular monitoring highlights overspending, cost inefficiencies, or opportunities for renegotiation to achieve better outcomes.

Managing Transparency and Accountability

• Organisations are accountable to stakeholders, including the Scottish Government and the public.
• Reporting provides a clear audit trail of contract performance, decisions made, and remedial actions taken.

Documenting Decisions

• Maintain clear records of actions, approvals, and communications.

Early Issue Detection

Route 2/Route 3 contracts can involve complex deliverables. Monitoring allows early identification of risks such as:

• Supplier financial instability
• Delivery delays
• Non-compliance with contractual obligations

Further guidance on Risk Management can be found in Additional Resources

Frequency

• Monthly: Operational performance and financial tracking
• Quarterly: Comprehensive performance, risk, and compliance reporting
• Annually: Strategic review of supplier performance, contract outcomes, and lessons learned

Content

Reports should include:

1. Executive Summary – High-level overview of performance and key issues.
2. Performance Metrics – KPI/SLA achievement/Balanced Scorecard feedback, delivery milestones, quality indicators.
3. Financial Summary – Spend to date, forecast, and variances.
4. Risk Update – Key risks, mitigations, new issues, escalations.
5. Compliance Status – Regulatory, legal, and contractual compliance.
6. Action Plan – Corrective measures, responsible parties, deadlines.

MI is used to monitor the supplier's or contract's performance. It ensures management have the information necessary to make effective strategic and operational decisions.

It is important that your MI requirements are clearly defined and communicated to the supplier. The reporting arrangements can be included in your specification and/ or in the terms and conditions of the contract. Reporting arrangements must be fair and proportionate and not duplicate information already provided.

Your MI approach should minimise demands on suppliers for information about goods/ service delivery. The frequency and level of reporting should be informed by a risk assessment. Reporting may increase in certain circumstances, for example, if a complaint is made about service/ delivery.

For some specific services you should avoid duplicating information which is collected by and is available from regulatory bodies. This can be achieved through the development of Memorandum of Understanding and regular discussions between the Organisation and the regulatory bodies.

Contract Managers/ Contract Management Officers should present information gained through contract management in regular reports to senior managers. In order to fulfil their role, they should:

• prepare and issue reports summarising their actions, identifying any significant issues and detailing the conclusions that they have reached;
• consider the consistency of their conclusions with those arising from the work of the regulatory bodies;
• clearly identify the nature and grounds for any concerns and the action that is required to secure improvement;
• consult suppliers on the factual accuracy of all reports;
• communicate regularly with suppliers and ensure that emerging findings are discussed at an appropriate level within their organisations.

The Management Information Example document which can be found at the bottom of the page, provides examples of what could be included in MI reports as well as some examples of KPIs that could be included in an Invitation to Tender (ITT).

Performance Review Meetings provide your Organisation and the supplier with an opportunity to:

• Focus on end to end performance;
• Identify issues and opportunities; and
• Put appropriate action plans in place.

The Performance Review Meeting standard agenda template can be completed by your Organisation and the supplier before the meeting.  This will provide a structure to the meeting..

It is best practice to hold at least an annual review for suppliers identified (under the segmentation process) as requiring ‘medium level’ supplier management.  At least two review meeting per year should be held for ‘high level’ suppliers.

The Review Meeting Template and a Performance Review Agenda Example are available at the bottom of this page to download an to assist you in doing this (and can be amended to suit your commodity/service contract).

Contracts are awarded following a thorough evaluation process which addresses some standard elements.

Throughout the life of the contract, your Organisation’s Contract Managers/Contract Management Officers should perform periodic supplier ‘health checks’. This ensures the standards demonstrated during the initial evaluation are being maintained. Health checks could include:

• Financial Status;
• Business Probity;
• Conviction of Criminal Offences;
• Compliance with Legislation and Regulatory Provisions (including Equality);
• Corporate Social Responsibility;
• Sustainable Procurement and Environmental practices;
• Health & Safety; and
• Insurances.

The frequency of the checks should be in line with the type of contract. For example, Strategic and Bottleneck contracts should be checked more frequently than Leverage and Routine contracts.

For guidance on how to segment your contracts, please visit the Segmentation Station.

Improvement opportunities can be identified by anyone engaged with you Organisation, both internally and externally.

Many improvement ideas can come from management, employees and supplier(s) operationally involved in the delivery of the service/ goods contract. Supplier(s) and employees can be particularly insightful as they are regularly exposed to operational inefficiencies which may not be visible higher up in the Organisation.

Your Organisation should seek feedback and should work to develop a culture where everyone in the Organisation is encouraged to look for, and suggest, operational improvements. All suggestions should be considered.

Incentives and sanctions should be used appropriately to maintain/improve the contract/supplier performance.

There are specific contract terms and conditions (T&Cs) that can be used to help drive contract compliance/performance. These should be incorporated into the contract T&Cs.

You should ensure that you understand the contract's specific T&Cs. Any incentives and sanctions must be appropriate and legally enforceable. You must seek legal advice if you are in doubt as to the wording, appropriateness or legality of a proposed condition.

Examples of incentives and sanctions which could be considered are listed below. These must not be applied autonomously. Appropriate internal approval must be sought and received prior to implementation.

Incentives could (subject to avoiding substantial modification) include:

• contract extension options as;
  • a longer contract opportunity could provide performance motivation;
  • payment by result, e.g. milestone payments (linked to defined deliverables).

Conditions of Contract could include:

• retention e.g. legitimately withholding payment if deliverables are not completed with genuine and notified reason, but compliant with previously agreed contract terms and conditions;
• legal action;
• termination of the contract. (Please note: you cannot terminate a contract with the aim of avoiding procurement rule obligations);
• collecting liquidated damages. Please note that Liquidated Damages is the amount which the parties designate during the formation of the contract for the injured party to collect as compensation should a specific breach occur.

For a sanction to be effectively enforced, sufficient evidence is required to justify the claim or action. It is therefore important to have clear records which could include records of; agreed service levels; notice periods; reminders; communications; agreements etc.

Any enforced incentive or sanction must comply with the agreed terms and conditions for the contract or agreement.

Sustainable Procurement outcomes, for example Fair Work Practices, must be an integral element of the contract and supplier management process. They should be included as a standard agenda item at supplier review meetings and considered alongside all other contract management matters.

It is important to ensure monitoring includes the use of any agency or sub-contractor workers throughout the duration of the contract. This will include any new members joining the workforce engaged on the contract's delivery.

Evidence should be sought from suppliers to demonstrate compliance with agreed contract conditions. This includes what the main contractor is doing to ensure Sustainable Procurement outcomes, such as Fair Work First commitments, down the supply chain to subcontractors and to agency workers. Evidence which should be sough can include, reviewing recruitment information which could include pay policy and the terms and conditions for workers  involved in the delivery of the contract. 

Where there are material concerns regarding a supplier’s compliance with any sustainable procurement commitments or the contractual obligations it has made, an Organisation could consider whether to undertake general sustainability audit of the contract.

For Care & Support Services please also read the Additional Guidance when Reviewing a Care and Support Service and Additional KPI Guidance documents, which can be found at the bottom of this page.

In some areas Contract Management Officers routinely attend the Care Inspectorate’s post- inspection feedback sessions with service providers.

Contract management arrangements should identify what happens when the contract is not being delivered as agreed or, the agreed quality standards are not being met.

As an example, for Care and Support Services, the content management arrangements should describe the process for agreeing necessary improvements (where appropriate, in discussion with the Care Inspectorate) to the service and the timescales that will apply. The contract itself should specify the circumstances in which the public body has a right to terminate the contract (for example, insolvency, service failure, loss of  registration).

Award notification: Send formal letters via Public Contracts Scotland (PCS) or direct communication, including standstill periods if applicable.

Record decision: Document the award decision, including rationale, evaluation scores, and approvals.

Contract signing: Ensure both parties sign all contract documents.

Communicate obligations: Share the contract’s reporting, performance, and governance requirements with the supplier.

Transition plan: Develop a detailed plan covering:

• Responsibilities of the Contract Manager(s)
• Supplier on-boarding timeline
• Systems access, document handover, and key contacts
• Initial performance reporting schedule
• Communication and escalation procedures

Resource allocation: Ensure staff are assigned for monitoring, reporting, and day-to-day liaison.

Risk transfer confirmation: Confirm the supplier has accepted and understands risk responsibilities.

Technical readiness: Confirm any relevant technical systems, premises, or equipment are prepared for delivery.

Kick-off meeting: Hold a formal meeting with all relevant stakeholders and the supplier to review:

• Contract objectives, deliverables, Key Performance Indicators (KPIs), and timelines
• Governance and reporting requirements
• Risk register and mitigation measures
• Communication and escalation processes
• Initial invoicing, payment schedules, and milestones

Action log: Maintain a live log of actions and responsibilities arising from the meeting.

Supplier induction: Ensure supplier staff are familiar with reporting templates, IT systems, and relevant Scottish public sector policies.

Initial reporting period: Typically the first 1–3 months, focusing on compliance, milestone delivery, and financial tracking.

Check risk response: Review supplier’s approach to initial risks and ensure mitigation measures are in place.

Early corrective action: Address any deviations immediately to prevent escalation.

Document lessons: Capture handover lessons for future contracts.

Steering group oversight: Ensure a formal governance forum is in place for medium-to-high risk contracts.

Regular reporting: Agree the frequency (monthly or quarterly) for performance, risk, and financial reporting.

Escalation routes: Clarify which issues escalate and to whom – e.g. Contract Owner, Senior Reporting Officer (SRO), or senior management.

Audit and assurance: Ensure internal audit or independent assurance is scheduled for the first 6–12 months.

Recommended Governance Tiers

1. Organisation Board/Senior Management Team
2. Senior Responsible Owner (SRO) / Contract Owner
3. Contract Manager (Operational Lead)
4. Commercial / Procurement Team
5. Technical / Service Leads
6. Finance Lead
7. Risk & Assurance / Legal
8. Supplier Relationship Manager (if formal model used)
9. Contract Users / Operational Stakeholders
10. Supplier-side Contract Manager

This structure supports accountability, escalation, transparency, and effective decision-making.

Organisation’s Board / Senior Management Team

Board / Senior Management sponsorship is critical to the success of an embedded Contract and Supplier Management approach.

The Board / Senior Management Team should take the ultimate strategic ownership of business critical strategic supplier(s). They should be fully committed to improving contract performance collaboratively with those suppliers.

Senior Responsible Owner (SRO) / Contract Owner

Overall accountability for contract outcomes.

Responsibilities

• Approves contract management strategy, KPIs, scorecards, and risk plans.
• Ensures compliance with Scottish Procurement Finance Manual (SPFM) and organisational governance.
• Chairs senior-level reviews (monthly/quarterly/biannual).
• Approves significant variations, extensions, or commercial decisions.
• Ensures adequate resources for effective contract management.
• Acts as escalation point for significant performance or financial risk.
• Provides reports to Executive Team or Board.

Contract Manager (Day-to-Day Lead)

Primary role for managing supplier performance and ongoing activities.

Responsibilities

• Develops and maintains the contract management plan.
• Manages KPI reporting, Balanced Scorecard and performance reviews.
• Oversees delivery of services against specification/SLA.
• Ensures continuous improvement and value-for-money initiatives.
• Maintains the contract risk register and ensures mitigating actions.
• Manages contract variations, change control, and compliance.
• Coordinates quarterly contract meetings and performance boards.
• Ensures accurate documentation and audit trail.

In addition, every contract should be managed by a nominated member of staff (‘contract manager/contract management officer’). In a collaborative setting, organisations should determine which organisation will take the lead in managing the contract. An organisation should ensure that there is clarity about the distinction between:

• contract management (the responsibility of the organisation)
• service management (the responsibility of the supplier)

The Contract Manager should have the mind-set to exceed rather than meet required goals. They will, deal with a constantly changing set of requirements. They need excellent communication and stakeholder management skills. They should be the principal owner of the supplier relationship and contract performance. They will be responsible for business-to-business relationships, contract management performance and contract management competencies, including:

• monitoring contract and supplier performance against KPIs and other specified performance indicators (in partnership with contract management contributors and end users).
• monitoring ‘take-up’ and spend through the Framework or Contract
• managing any reactive/unplanned issues which arise in relation to the contract(s)
• communication of performance and efficiency gains as a result of MI analysis
• drafting and issuing supplier or customer surveys where appropriate
• chairing and managing performance reviews with the supplier. This includes end user feedback, and disseminating outcomes
• managing any major performance issues and complaints
• facilitating and championing supply chain innovation, continuous improvement initiatives and best practice
• managing Framework Agreement variations, and communicating outcomes
• managing the extension of any optional extension periods (and/or the re-tender process and the supplier Exit Strategy)
• providing guidance and advice to end users as necessary
• MI validation

Procurement / Commercial Team

Provides strategic commercial assurance and compliance oversight.

Responsibilities

• Advises on governance, contractual interpretation, and commercial risk.
• Oversees contract variations, ensuring legal/commercial compliance.
• Supports annual contract reviews and strategic supplier assessments.
• Ensures adherence to Procurement Journey requirements.
• Provides market intelligence and benchmarking for Route 3 suppliers.
• Supports re-tendering and transition planning.
• Escalates issues involving non-compliance, breach, or poor Value For Money (VFM).

Technical / Service Leads

Ensures the service delivered meets required operational standards.

Responsibilities

• Monitors technical KPIs (e.g., quality, service levels, system availability)
• Reviews technical incidents, root cause analysis, and supplier proposals
• Approves technical changes, solution upgrades, or configuration
• Confirms delivery of milestones, outputs, and deliverables
• Provides expert advice in performance review meetings
• Ensures security, data protection, and health & safety compliance

Finance Lead

Ensures financial governance and cost control.

Responsibilities

• Verifies supplier invoices, reconciliations, and financial performance
• Tracks budgets, forecast spend, and identifies cost variances
• Oversees financial risk (e.g., indexation, inflationary impact)
• Assesses gainshare, efficiency savings, or cost-avoidance proposals
• Supports financial viability assessments of the supplier

• Ensures compliance with finance regulations and the Scottish Procurement Finance Manual (SPFM)

   

Risk, Assurance & Legal

Provides corporate oversight and risk assurance.

Responsibilities

• Supports contract risk assessment and escalation
• Ensures compliance with legal, regulatory, and statutory obligations
• Reviews serious incidents, conflicts of interest, and audit findings
• Advises on disputes, breaches, or termination scenarios
• Ensures appropriate approvals for major variations

Supplier Relationship Manager 

Used in mature organisations or for strategic suppliers.

Responsibilities

• Manages strategic partnership relations beyond day-to-day operations
• Facilitates innovation, improvement, and long-term planning
• Supports relationship health checks and strategic alignment reviews
• Provides insight to category strategies and portfolio management

Contract Users / Operational Stakeholders

Front line staff who use or receive the service.

Responsibilities

• Report issues, risks, or non-compliance in service delivery
• Participate in user feedback, testing, or acceptance processes
• Monitor operational performance that cannot be seen centrally

Stakeholders/end users contribute to contract and supplier management process by:

• supporting and championing supply chain innovation, continuous improvement initiatives and best practice
• facilitating the validation of end user feedback on contract and supplier performance
• contributing data to allow the  monitoring of supplier performance against KPIs and other specified performance indicators
• contributing to performance reviews with the supplier
• participating in the annual performance review
• operational management of compliance, supply, demand and payment at a local level
• managing supplier relationships relating specifically to operational issues
• providing contract/supplier performance data to contract management contributors
• referring supplier performance issues to the Contract Manager
• leading, supporting and championing supply chain initiatives

Supplier-Side Contract Manager

The supplier’s accountable representative.

Responsibilities

• Ensures contractual commitments are delivered
• Provides performance data, KPIs, and improvement plans
• Manages issue resolution and escalations
• Ensures appropriate governance and resourcing on the supplier side
• Leads corrective actions and service improvement initiatives

Contract Mobilisation (0–6 months)

• Confirm roles, governance, and escalation routes
• Set up KPI dashboards and or balanced scorecard and reporting
• Validate staffing, resourcing, and readiness plans
• Baseline performance and risks
• Ensure alignment with relevant commodity strategies and/or tender documents as appropriate

Business-as-Usual Delivery

• Monthly operations meetings.
• Quarterly performance review meetings
• Annual strategic review
• Continuous improvement and corrective action plans
• Audit compliance checks

Contract Variations and Change Control

• Transparent documentation
• Impact assessments (cost, legal, risk)
• Approval workflows
• Communication to all stakeholders

Contract Risk Management

• Maintain a live risk register.
• Risk scoring aligned with organisational frameworks
• Track mitigations and assurance actions
• Escalate red-rated risks promptly

Supplier Relationship Management (SRM)

• Relationship mapping (operational, tactical, strategic)
• Health checks or relationship assessments
• Joint improvement or innovation workshops
• Annual contract and supplier balanced scorecard

Monthly Operational Meeting

• KPI review
• Incidents, issues, and progress
• Short-term actions

Quarterly Performance Review

• Full balanced scorecard
• SLA performance
• Financial performance
• Change proposals
• Risk and compliance

Annual Strategic Review

• Value-for-money assessment
• Market comparison
• Business continuity and resilience
• Innovation and sustainability review
• Long-term planning

Medium/ high-value, medium/high-risk contracts should maintain:

• Contract Management Plan
• KPI dashboard and/or Balanced Scorecard
• Risk Register
• Issue Log and Action Tracker
• Change Control Register
• Supplier Performance Reports
• Governance plan
• Relationship Maps

This framework is suitable for medium–large public bodies. It can be applied to any Route 3 contract.

Purpose of the Governance Framework

To ensure:

• clear accountability
• robust risk management
• transparent performance monitoring
• value for money
• compliance with Scottish Public Finance Manual (SPFM), Procurement Journey, and internal governance
• strong supplier relationships while maintaining commercial discipline

Governance Structure 

Roles included:

• SRO – Senior Responsible Owner / Contract Owner
• CM – Contract Manager (day-to-day lead)
• PT – Procurement/Commercial Team
• SL – Service/Technical Lead
• FIN – Finance Lead
• R&A/LEG – Risk, Assurance & Legal
• SRM – Strategic Supplier Relationship Manager (if applicable)
• SU – Contract Users / Operational Stakeholders
• SUP – Supplier-side Contract Manager

Strategic Governance

• Senior Responsible Owner (SRO)
• Accountable for contract outcomes, risk exposure, financial stewardship and overall compliance.
• Chairs the Annual Strategic Review Meeting.
• Approves major variations, renewals, extensions, or commercial settlements.
• Provides updates to Audit & Risk Committee, Board, or Executive Team.
• Annual Contract Review Board

Participants:
SRO (chair), SRM (if used), CM, PT, FIN Lead, SL, R&A/Legal, Supplier’s senior representative.

Outputs:

• Strategic performance report
• Value-for-money assessment
• Innovation and improvement roadmap
• Re-contracting or extension decision

Tactical Governance

Quarterly Performance Board

Participants:
CM (chair), PT, SL, FIN Lead, R&A/Legal, SRM, Supplier Contract Manager.

Purpose:

• Review Balanced Scorecard results
• Review SLAs/KPIs, incidents, complaints, quality measures
• Assess risk register, financial position, and mitigation progress
• Track contract variations and change requests

Outputs:

• Quarterly performance pack
• Improvement action plans
• Updated risk and issues log

Operational Governance

Monthly Operations Meeting

Participants:
CM, SL, PT (as needed), SU representatives, Supplier Ops Lead.

Purpose:

• Day-to-day performance review
• Operational issues and incident review
• User feedback
• Short-term action logging
• Verification of KPI data

Outputs:

• Monthly KPI dashboard
• Issue/action log updates

Below are some suggested documentation that you should keep on record when managing Route 3 - high value, high risk contracts:

1. Contract Management Plan (CMP)
   • Roles and responsibilities
   • Governance structure
   • KPIs & reporting
   • Risk & contingency
   • Change control
   • Escalation routes
2. Performance Management Framework
   • KPI definitions
   • Data requirements
   • Scoring & weightings
   • Balanced scorecard
3. Contract Risk Register
   • Strategic and operational risks
   • Controls and mitigation
   • RAG scoring
   • Owner and review frequency
4. Issues & Actions Log
5. Change Control Register
6. Financial Monitoring Sheet
   • Budget v. actual
   • Forecasting
   • Invoice validation
   • Indexation tracking
7. Business Continuity & Disaster Recovery Assurance Checklist
8. Stakeholder Communication Plan
9. Exit & Transition Plan

The below table provides an example CSM meeting plan, this can be downloaded at the bottom of the page and amended as required to suit your contract.

Roles included:

• SRO – Senior Responsible Owner / Contract Owner
• CM – Contract Manager (day-to-day lead)
• PT – Procurement/Commercial Team
• SL – Service/Technical Lead
• FIN – Finance Lead
• SUP – Supplier-side Contract Manager

1. Proportionate to risk – higher-risk contracts require more robust planning and documentation.
2. Collaboration – early engagement with the supplier sets the tone for partnership working.
3. Transparency and documentation – all agreements should be minuted and filed.
4. Service continuity – the mobilisation plan must minimise disruption to service users.
5. Governance first – roles, responsibilities, and decision pathways must be agreed before work starts.

A structured handover ensures that the contract manager has the necessary information.

Procurement should provide the contract manager with:

• Signed contract / Terms and Conditions (T&Cs)
• Specification and schedules
• Tender responses (technical and commercial)
• Pricing schedules
• Scored evaluation sheets
• KPI and service level requirements
• Risk and issues identified during procurement
• Award letters and standstill documentation
• Transfer of Undertakings (Protection of Employment) (TUPE) information (if applicable)
• Data protection agreements
• On-boarding requirements

Handover Meeting Should Cover:

• Context and purpose of the contract
• Key risks highlighted during evaluation
• Supplier strengths and potential areas requiring attention
• Contract management expectations
• Mobilisation timeline and Go-Live target date

All documents should be stored in the contract/relevant file.

Internal Mobilisation Planning 

 Before meeting the supplier, the public body must align internally. Key actions should include:

Establishing the contract management team, including:

• Contract Manager
• Technical leads
• Finance
• IT/Data protection
• Human Resources (HR)/TUPE leads
• Legal (if required)
• Reviewing resourcing needs
• Mapping internal dependencies
• Agreeing internal governance (who approves what, and when)
• Checking budget availability and coding
• Identifying training needs (e.g., system access, technical knowledge)

Supplier Mobilisation Kick-Off Meeting 

 A formal kick-off meeting is essential in medium–high risk contracts.

Agenda should typically include:

1. Introductions and governance structure
2. Review of the contract objectives and outcomes
3. Mobilisation plan and timelines
4. Supplier resource allocation
5. KPI dashboard/balanced scorecard and reporting templates
6. Data and system access requirements
7. Business continuity expectations
8. Health & Safety, General Data Protection Regulation (GDPR), security or regulatory requirements
9. Risk review and new risks identified
10. Communication and escalation routes

The meeting should end with:

• A joint action plan
• Named points of contact
• Mobilisation timeline
• Agreement on next steps

Minutes should be recorded and shared.

Confirming KPIs, SLAs & Reporting 

Medium–high risk contracts require clear and tested performance measures from the start.

Actions:

• Walk through each KPI and Service Level Agreement (SLA) with the supplier
• Ensure definitions and measurement methods are clear
• Test reporting templates before Go-Live
• Agree frequency of monitoring (monthly/quarterly)
• Confirm data sources (supplier-provided vs internal systems)
• Agree tolerances and thresholds (green/amber/red)
• Identify KPIs that require base-lining during mobilisation
• Establish how under-performance will be addressed

The supplier must sign off on the agreed KPIs.

A dedicated contract risk register should be created before the contract starts.

Minimum required risk categories include:

• Service continuity
• Supply chain risks
• Financial stability
• Cybersecurity and data protection
• Health & Safety
• Workforce (including TUPE)
• Business continuity
• Dependency on subcontractors
• Political or reputational risks

Each risk should have:

• Likelihood and impact scores
• Owner (public body or supplier)
• Mitigation actions
• Early warning triggers

Risk registers should be reviewed at least weekly during mobilisation.

Medium–high risk contracts require documented, structured governance.

Governance should define:

• Roles and responsibilities
• Delegated authority levels
• Meeting structures:
  • Weekly or biweekly mobilisation meetings
  • Monthly contract review meetings (from Go-Live)
  • Quarterly strategic review meetings
• Reporting expectations
• Decision-making routes
• Dispute escalation procedures
• Audit and record-keeping requirements

This structure must be formally agreed with the supplier.

Early clarity prevents future misunderstandings.

Agreements should include:

• Operational contacts (day-to-day)
• Commercial contacts
• Senior escalation paths
• Emergency contacts
• Response times for routine and urgent communications
• How issues, risks and incidents will be reported
• Shared document locations (if applicable)

A communication plan/matrix should be issued to both sides.

A mobilisation plan is mandatory for medium–high risk contracts.

The plan should outline:

• Activities
• Owners
• Timescales
• Dependencies
• Risks
• Milestones
• Gate reviews (“ready for service” checkpoints)

Examples of mobilisation tasks:

• Staff on-boarding / TUPE transfers
• System access setup
• Site surveys
• Equipment installation
• Process mapping
• Business continuity rehearsals
• Trial runs / test scenarios
• Training delivery
• Data migration (if relevant)

The plan should be reviewed weekly.

Before Go-Live, a Readiness Assessment must be completed.

This should confirm:

• All staff are trained and cleared
• Systems and data access work
• KPIs and reporting are tested
• Business continuity plans are implemented
• Health and Safety and compliance checks passed
• Risks are within acceptable tolerance
• Stakeholders are informed
• Supplier has demonstrated ability to meet service levels

If concerns remain, Go-Live should be delayed or a controlled soft-launch used.

The formal Go-Live requires:

Sign-off from:

• Contract Manager
• Procurement Lead
• Senior Responsible Officer (SRO)
• Legal (if required)

A Go-Live communication sent to:

• Supplier
• Internal stakeholders
• Service users (if relevant)

A contract management pack should be finalised containing:

• Signed contract
• Mobilisation records
• KPI dashboards/balanced scorecard
• Risk register
• Communications and escalation map
• Meeting calendar
• Contact lists
• Reporting templates