Are you under pressure to find savings from your waste management service provider?
In the current economic climate, local authorities must find savings across all their services. However, where services are contracted out, it can seem like an impossible task to reduce your expenditure during the lifetime of the contract.
Our experience shows, though, that savings are possible, whether as a result of careful enforcement of the contract terms or through negotiation with the contractor. An important part of our work is to understand the leverage you have within your contract, and how to make best use of the performance management tools it includes to achieve cost reductions.
Many contracts include mechanisms that allow changes to be negotiated that reduce cost and/or change the method of service delivery without risk of challenge under public procurement rules. We can advise on where there is scope to reduce the contractor’s costs without significantly reducing the standard of service you receive. Contractors will often be open to reducing contract charges provided that their own costs also fall. We can help you open and manage dialogue with their contractor, with the aim of identifying compromises that can work for both parties.
Our support can include:
- preparing a practically-focused contract manual to help contract management staff apply the rules with confidence;
- working with the contractor to review current service methods;
- providing evidence that efficiency improvements can be made through techniques such as work study and cost and financial modelling;
- leading a constructive negotiation process, or providing help where a dispute has arisen; or
- working alongside officers and contractors to successfully implement agreed service changes.
Whether you’re looking for help in designing and leading the contract review process from the beginning, or for independent scrutiny and evaluation of a contractor’s proposals, contact our team to find out how we could assist.