This guidance sets out the responsibilities and best practice for staff who are involved in managing contracts and/or engaging with suppliers as part of their role and responsibilities but are not part of the procurement/commercial team.
It applies to all contracts and framework call-offs for goods and services.
It should be used alongside your organisational procurement procedures and relevant Scottish Government policies.
The contract management approach should have been set by the Procurement Team, based on the contract’s value and risk.
Your role is to apply that approach proportionately in day-to-day delivery — e.g. the frequency of check-ins, recording issues early, and escalating sooner for critical services
For more comprehensive CSM guidance, please refer to:
The level of contract and supplier management required for each contract is set during the Tender Stage by the procurement team, based on risk and value
As the person responsible for managing or are using the contract, your role is to apply that agreed approach in practice and flag any changes in risk or service delivery as early as possible.
This means:
Non-procurement staff often have key roles in:
If there is a lack of clarity or training provided for those staff, risks include non-compliance (legal / regulatory), cost overruns, poor quality, and reputational damage
This guidance is here to help anyone involved in managing or using a contract understand what good practice looks like and how to apply it in a simple, proportionate way.
Good contract management protects services, supports effective supplier relationships, and ensures public funds deliver maximum value.
More in depth guidance on Roles and Responsibilities can be found in Route 3
| Role | Responsibility | Examples[L |
| Contract Owner | Accountable for overall contract delivery |
|
| Contract Manager | Day-to-day management of supplier relationship |
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| Contract User | Orders and/or receives goods or services |
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| Non-procurement Staff Role | May also have the role of Contract Owner and/or Contract Manager |
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| Procurement / Commercial Team | Provides professional procurement advice |
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| Finance | Payment controls and budget monitoring |
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| Supplier | Deliver goods/services in line with contract |
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Quickfire Guide
- Value for money / Best Value
- Legal compliance – public procurement law, Scottish policy etc.
- Transparency and fairness
- Ethical standards, conflict of interest
- Risk management
- Sustainability (where relevant and proportionate)
These principles underpin decisions and ensure staff act in line with policy. Helps in making judgement calls.
A Contract Compliance Checklist document is available for you to use, these can be found at the bottom of this page.
Before you begin contract management, take a moment to get familiar with the basics:
This quick check helps you understand the status of the contract before you start managing performance or escalating issues.
If you cannot easily find the contract, the owner, or evidence of monitoring, that is itself a risk and should be raised early.
The following steps should guide staff through what to expect and what their responsibilities are at each stage. This should help staff avoid missteps such as unapproved extensions or inadequate monitoring:
A CSM Handover document and a CSM Handover Checklist are available for you to use, these can be found at the bottom of this page.
The following templates are available for you to use, these can be found at the bottom of this page:
Please note that the proportionate level CSM required should have been agreed between the Procurement Team and the Supplier and should set out in the Contract Handover documentation. If in doubt, please contact your Procurement Team for clarification.
A Contract Variation Request Form can be found at the bottom of this page
A Contract Variation Request Form is available for you to use and can be found at the bottom of this page, if required.
An Exit Strategy Document is available for you to use, these can be found at the bottom of this page.
Quickfire Guide
Good relationships with suppliers can help avoid conflicts and improve delivery; clear communication ensures expectations are aligned.
Video Guide
A conflict of interest arises when personal, financial, or other interests could compromise (or appear to compromise) the impartial performance of duties in managing or overseeing a contract.
In contract management, this can happen at any stage — from tendering and evaluation to awarding, monitoring, or renewing contracts. Listed below are some of the typed of conflict that can occur:
Actual Conflict
A real and existing conflict between personal interest and professional duty.
Example: A contract manager awards a contract to a company owned by their spouse.
Perceived (or Apparent) Conflict
When it looks like someone’s personal interests could influence their decisions — even if they don’t.
Example: A procurement officer socialises regularly with a bidder, creating suspicion of bias.
Potential Conflict
A situation where personal interests could conflict with official duties in the future.
Example: An employee involved in a tender process later plans to seek employment with one of the bidding companies
Stage | Example of Conflict |
Contract execution | Overlooking supplier non-performance because of personal relationships.
|
Renewal/extension | Extending a contract without competition due to personal benefit or pressure. |
unfair or biased contract awards
legal or regulatory penalties
damage to organisational reputation
financial losses due to poor value for money
internal disciplinary action or termination
Disclosure - Require all employees, evaluators, and consultants to declare any personal or financial interests.
Segregation of Duties - Ensure that no single person controls multiple stages of the contract process.
Conflict of Interest Policy - Implement clear rules and guidance on identifying, declaring, and managing conflicts.
Independent Oversight - Use committees or auditors to review high-value or high-risk contracts.
Training and Awareness - Regular training on ethics, procurement law, and conflict management.
Documentation - Keep detailed records of decisions, declarations, and mitigation measures.
Case study
Organisation: A Scottish public sector body
Department: Community Wellbeing Team (non-procurement staff)
Contract Type: Low-value, low-to-medium risk
Contract Title: Community Support Helpline – Call Handling Service
Supplier: XXX
Contract Value: £42,000 per year
Contract Duration: 2 years + optional 1-year extension
Route to Market: Quick Quote on Public Contracts Scotland (PCS)
Contract Owner: Service Manager (non-procurement professional)
Procurement Support: Corporate Procurement Unit (CPU) at award stage only
The organisation operates a community support helpline offering advice, information, and onward referral. Due to changes in service demand, the organisation outsourced call-handling for out-of-hours operations.
The CPU supported the tender and award, but ongoing contract and supplier management responsibilities sit with operational staff, mostly with no formal procurement training.
This case study demonstrates how non-procurement staff can manage a contract effectively and proportionately.
Service Manager - Contract Owner & Day-to-Day Manager
Helpline Team Lead - Monitors performance data & logs issues
CPU (Procurement Team) - Provides advice on changes, disputes, extensions
Finance Team - Manages invoices and budget
Supplier Account Manager -Single point of contact for service queries
Information Governance Officer -Advises on data/Breach management
Performance Standards
Quality Requirements
Commercial Terms
Risk Level
Because this is a low-value/low-to-medium risk contract, the management approach is proportionate, but still structured.
Service Monitoring
Relationship Management
Financial Management
Risk & Compliance Oversight
In months 4–5, call-answering performance dropped to 82% due to supplier staff shortages.
Actions Taken:
Learning Point for Non-Procurement Staff:
Performance issues should be recorded, discussed, and monitored, not ignored.
A vulnerable caller was misinformed about emergency support availability.
Actions Taken:
Learning Point:
Non-procurement managers should feel confident to raise quality concerns—they are central to protecting service users.
Supplier invoiced £4,000 instead of the contractually agreed £3,500 for one month.
Actions Taken:
Learning Point:
Basic commercial checks prevent over-payments and maintain contract integrity.
A formal annual review was held between the non-procurement contract manager, CPU, and the supplier.
Outcomes
Decision:
The organisation agreed (subject to CPU review) that extending the contract was appropriate because:
Market testing not required for low-risk continuation
You do not need to be a procurement expert to manage a contract well.
Following structured processes and using CPU support is enough for most low-to-medium risk contracts.
Document everything.
Issue logs, meeting notes, and performance records provide important information for continuous improvement and are vital evidence that help solve problems that may arise.
Be proactive with supplier relationships.
Engage regularly—not only when things go wrong. Good supplier relationships offer opportunities to share good practices and encourage joint problem solving and a positive attitude to contract delivery.
Understand the basics of the contract.
Read the specification, KPIs, and pricing schedule at minimum.
Use procurement support appropriately.
CPU should be involved for variations, extensions, disputes, and legal questions.
Contract and supplier management is the day-to-day management of a contract after it has been awarded. It focuses on:
Non-procurement staff are often:
Your role helps ensure contracts deliver what was paid for.
You are responsible for:
You are not responsible for:
It helps ensure:
Non-procurement staff play a key role in achieving these outcomes.
You should have access to:
These are usually stored in a contract register, contract handover document, shared drive or contract management system.
You should:
Avoid informal agreements or commitments outside the contract.
You should:
Do not ignore issues or accept reduced service without approval from your Procurement Team
You should:
If issues repeat or escalate, involve your manager or Procurement.
No — not informally.
Any change to scope, cost, duration, or deliverables must:
Always involve Procurement if a change is proposed.
You should contact Procurement if:
A contract variation is a formal, approved change to the contract.
It ensures:
Verbal or informal changes are not permitted.
Yes, if you are authorised and:
If something looks incorrect, you should query it before payment.
You should keep records of:
Good records support audit, transparency, and accountability.
A conflict of interest arises when personal interests could influence (or appear to influence) decisions.
Examples include:
All conflicts must be declared in line with your organisation’s policy.
No.
Contracts can only be extended if:
Always plan ahead and involve Procurement early.
Yes.
While monitoring may be lighter, you must still:
Public sector accountability applies to all contracts.
A low-value / low-risk contract is one where:
Even so, public money and public sector rules still apply.
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Case study
Organisation: XXX
Contract Title: Provision of Scheduled Medical Equipment Maintenance
Contract Value: £450,000 over 3 years
Risk Level: Medium value / medium risk
Supplier: XXX
Contract Type: Framework call-off (from a national medical equipment servicing framework)
Contract Manager: Estates & Facilities Manager
Service Areas Affected: Radiology, Theatres, Outpatients, Community Care
The Health Board required a reliable supplier to provide maintenance and repair services for a range of diagnostic and treatment equipment. Downtime of equipment affects patient care, waiting times, and clinical risk—but the contract value and complexity place it in the medium-risk category.
A mini-competition was run under the national framework, with award criteria based on:
The winning supplier demonstrated strong technical competence and offered a transparent pricing structure.
A formal handover meeting took place between the procurement team and the contract manager. Key documents handed over included:
Contract Manager (Health Board)
Service User Leads (Radiology, Theatres, Outpatients)
Supplier Contract Lead
Procurement
The contract aimed to:
| KPI | Target | Measurement |
|---|---|---|
| Equipment availability | 90%+ | Supplier reports + spot checks |
| Urgent fault response | 4 hours | Logged system timestamps |
| Routine maintenance completion | 95% by due date | Maintenance schedule |
| Customer satisfaction | 4/5 average | Quarterly survey |
| Compliance with HTM & MHRA standards | 100% | Audit evidence |
Mobilisation
The Health Board held a mobilisation meeting to:
Monthly reporting provided:
Quarterly Review Meetings
Each quarter, the contract manager reviewed:
Minutes and action logs were maintained.
Issue Example:
In Month 5, Radiology experienced repeated delays in CT scanner repairs due to supplier staffing shortages.
Actions Taken:
Risk Example:
Risk of delayed preventative maintenance affecting clinical availability.
Mitigation:
The supplier proposed two improvements:
The Health Board accepted both, resulting in:
| Objective | Outcome |
|---|---|
| 90% equipment availability | Achieved 93% |
| 4-hour urgent fault response | 96% compliance |
| 95% preventative maintenance completion | 98% achieved |
| Customer satisfaction | Increased to 4.4/5 |
| 20% downtime reduction | 17% achieved (slightly below target but improving) |
This case study demonstrates practical, proportionate, and effective contract and supplier management for a medium-value, medium-risk contract within the Scottish public sector. The combination of structured governance, consistent reporting, and collaborative problem-solving resulted in improved service performance and value for money.
Case study
Organisation: XXX
Contract Title: Supply, Delivery & Maintenance of Communal Waste Containers
Contract Value: £320,000 over 4 years
Risk Level: Medium value / medium risk
Supplier: XXX
Contract Type: Open procurement – 60/40 Quality/Price
Contract Manager: Waste Services Operations Lead
Service Areas Affected: Waste & Recycling, Neighbourhood Services, Customer Services
The council required a reliable supplier to provide communal bins for housing estates and public spaces, as well as maintenance and replacement services. The contract’s operational impact—public safety, waste service continuity, and community satisfaction—classified it as medium-risk.
The council evaluated suppliers on:
The supplier scored highest due to strong warranty terms and a sustainability-led manufacturing process.
A structured contract handover meeting was held to transition ownership from procurement to the waste services team.
Contract Manager (Council)
Service Supervisors
Supplier Account Manager
Procurement (Council)
| KPI | Target | Monitoring Method |
|---|---|---|
| Delivery times | 95% within 10 days | Order tracking data |
| Repair completion | 90% within 5 days | Work orders / reports |
| Quality of bins | <2% failure rate | Inspections / reports |
| Sustainability | 30%+ recycled content | Annual certification |
| Customer complaints | Reduce by 15% | Reports |
Mobilisation Phase
Initial mobilisation activities included:
Ongoing Monitoring
The supplier provided a monthly performance dashboard showing:
The council’s waste supervisors cross-checked deliveries weekly.
Quarterly Review Meetings
Topics covered:
Minutes and corrective action plans were recorded.
Issue Example: Delivery Delays During Peak Period
In Month 7, several housing estates did not receive replacement bins on time due to supplier factory downtime.
Actions Taken
Risk Example: Vandalism Leading to High Failure Rates
Mitigation Measures
Two continuous improvement actions were delivered:
The supplier began analysing repair trends to preemptively replace wheel-sets.
These initiatives supported the council’s waste reduction and circular economy goals.
Outcomes After Year 1
| Objective | Outcome |
|---|---|
| 95% on-time delivery | Achieved 92% (slightly amber due to early delays) |
| Repairs within 5 days | Achieved 96% |
| Quality failure rate <2% | Achieved 1.4% |
| Sustainability target | 38% recycled material achieved |
| Complaint reduction | 12% decrease (on track but not yet met) |
Overall, the contract was evaluated as “Good – performing within expected parameters with minor improvements required.”
This case study demonstrates practical, balanced, and proportionate supplier management within a Scottish local authority setting. Despite initial challenges, collaborative governance and structured performance monitoring enabled strong value for money and supported community outcomes.
Lack of CSM can result in issues including:
Effective management ensures value for money, protects the public purse, and maintains service continuity.
Medium-high risk contracts often lack dedicated resources, so structured management is very important.
Maintain regular reporting and audit-ready documentation.
Typical requirements could include:
Using a structured approach, you may wish to:
You may wish to:
Steps could include:
Organisations should have:
Through a formal process that includes:
No change should occur without formal approval.
This protects auditability and supports dispute resolution.