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Commercial capability and contract management

Central government manages contracts with the private and third sector worth about £40 billion annually. Such contracts include providing services to citizens, military equipment, back office functions, custodial services, temporary workers and consultancy.

Poor management of commercial relationships has been a major cause of failures to achieve value for money in government projects and operations. To address this, government is currently reforming its commercial profession, including centralising the purchase of common goods and services, improving departments' capability and increasing its understanding of its key suppliers. In doing so it could benefit from our work identifying good practice in five key areas: government’s commercial capability, including governance, systems, information and people capability; market management including ways to encourage innovation and avoid over-dependence on too few suppliers; effective procurement approaches; good contract management; and ensuring government suppliers are transparent and accountable.

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Managing PFI assets and services as contracts end

This report provides information on managing PFI contracts when they end and considers whether government is preparing for expiry appropriately.

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Published:
5 Jun 2020
Carillion sign on a closed building

Investigation into the government’s handling of the collapse of Carillion

On 15 January 2018, Carillion declared insolvency and the Official Receiver, an employee of the Insolvency Service, started to liquidate its assets and contracts. This report focuses on the role of the UK government in preparing for and managing the liquidation of Carillion.

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Published:
7 Jun 2018
MOD housing

The Ministry of Defence’s arrangement with Annington Property Limited

The Ministry of Defence (the Department) has committed itself to annual rental bills of nearly £200 million and lost out on billions of pounds of asset value as a result of selling and leasing back the majority of its married quarters estate to Annington Property Limited in 1996 because of the subsequent steep increase in house prices and rents.

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Published:
30 Jan 2018