SOUTH TYNE & WEAR WASTE MANAGEMENT PARTNERSHIP

NORTH EAST RECYCLING FORUM

19 September 2013

The Intelligent Client in Contract Management

James Parkinson

Assistant Contract Manager

The Intelligent Client in Contract Management

Google… “intelligent client”•Result 5 - BP presentation – “You think you’re an intelligent client?”

•Procurement focus with examples:

•% of company turnover you account for

•Can you substitute supply?

•Exit strategy?

•Haven’t we got this intelligent client thing sorted?

The Intelligent Client in Contract Management

No, we haven’t got it sorted

• What about managing contracts once they’re up and running?

• Complexity and value of contracts• Technical expertise• Expectations• Risk• Reputation

• High profile examples of the results of contract management that hasn’t worked

FURTHER COLLABORATIVE OPPORTUNITIES

The Intelligent Client in Contract Management

“Some departments do have a reasonable understanding but it is still too variable and there is too much emphasis on design [of], rather than managing, contracts”

•Did the Ministry of Justice get off lightly?

The Intelligent Client in Contract Management

• Operational IT outsourced• Contingency plan for dealing with

the failure?• RBS knowledge of how to fix it?• Long-term damage?

The Intelligent Client in Contract Management

FURTHER COLLABORATIVE OPPORTUNITIES

The Intelligent Client in Contract Management

And what about contract management resources?

The Intelligent Client in Contract Management

What are some of the issues?

• Less flexibility or capacity to pick up for failures• Internet & social media – transparency, openness

and honesty• Reduced resources for management• Questioning the resources for contract

management, when things are going smoothly

Need to be more “intelligent” to meet these challenges

The Intelligent Client in Contract Management

The value of my previous life!

•Briefings•Presentations and speeches•Managing issues•Complaints – public, Councillor•Queries – public, Councillor•Oversee day-to-day logistics – smooth running•Proactive

•Reliance on officers across the Council and beyond•A bit like being an “intelligent client”

FURTHER COLLABORATIVE OPPORTUNITIES

The Intelligent Client in Contract Management

What’s specified?

Do you need it?

Is it importantto you?

Is it onerous?

A good use of contractor’s time?

A good use of your time?

The Intelligent Client in Contract Management

Risk-based – what areyour risks?

Health & safety

Performance

Financial

Reputation

Legislation

???

PoliticalProportionate

???

Health & safety

???

Performance

Health & safety

???

Financial

Performance

Health & safety

??? Reputation

Financial

Performance

Health & safety

???

Legislation

Reputation

Financial

Performance

Health & safety

???

PoliticalLegislation

Reputation

Financial

Performance

Health & safety

???

The Intelligent Client in Contract Management

Trust& Respect

Contractor Individual

Service

Issue

Intuition

FURTHER COLLABORATIVE OPPORTUNITIES

The Intelligent Client in Contract Management

Relationships

Partnership Expectationse.g. no surprises

Help eachotherProfessional

“Reasonableness”

Communication

Understanding

The Intelligent Client in Contract Management

Dealing withregular events

Verification &auditing

Payment

Performance

Indexation /inflation

Inspection

Invest thetime upfront…

…but use yoursixth sense too!

The Intelligent Client in Contract Management

What’s thelie of the land?

Anticipate – developments,problems, etc

Yourcontractor

The serviceprovided

Regulation

PolicyGood ideas

The sector

Financial

FURTHER COLLABORATIVE OPPORTUNITIES

The Intelligent Client in Contract Management

Scenarioplanning

What if…?

What wouldyou do? Options?

Are you happy to wait for that

to happen?

What would your contractor

do?

What’s yourpreference?

What are theconsequences?

The Intelligent Client in Contract Management

Review &re-commissioning

Cost components

Complementaryservices Affordability

Data

Lessons learnt

Need?

The Intelligent Client in Contract Management

If you don’t get it right, what’s the worst that can happen?

SOUTH TYNE & WEAR WASTE MANAGEMENT PARTNERSHIP

Thank you