How to manage your Digital Outcomes and Specialists contract

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When you agree a contract (or 鈥榗all-off鈥�) with a Digital Outcomes and Specialists supplier on the Digital Marketplace, you鈥檒l need to think about how you鈥檒l work together.

Make sure you both:

understand and agree to what the contract covers
agree to how and when the supplier will be paid
know what to do if you disagree about the work
know how to change or end a contract

Understanding the contract scope and writing 鈥榮tatements of work鈥橽u003c/h2>
You鈥檒l agree the scope of the contract with the supplier before the buying process ends so you both know what the contract covers. If either you or the supplier isn鈥檛 clear about anything in the contract, you should talk to each other about this as soon as possible.

Statements of work list the specific pieces of work that the supplier will do under the contract. You must include an initial statement of work with the contract so that both parties are clear on the first piece of work that needs to be done. Any later statements of work must be:

prepared by the buyer before the end of each piece of work

agreed by the supplier

signed by both the buyer and the supplier

A statement of work should include:

clear descriptions of the work that needs to be done

how long the work should take

a list of people needed to do the work

how the buyer will pay for the work, using either the 鈥榝ixed price鈥�, 鈥榯ime and materials鈥� or 鈥榗apped time and materials鈥� approach

how much the work will cost

Paying suppliers

Both parties should be clear about:

how buyers will pay for the contract
how the payment approach may affect the cost of the work
when the supplier will be paid

Read more about how to pay for services.

Changes to contracts

You can鈥檛 change the scope of your contract.

You can increase the value of a statement of work by up to 20% as long as you:

use your agreed 鈥榗ontingency margin鈥橽u003c/li>
need to change what鈥檚 being delivered in the statement of work
agree the increase in writing

For example, you could increase the amount you pay a supplier in a 拢10,000 statement of work by up to 拢2,000.

You can鈥檛 pay more if you鈥檙e hiring user research studios.

You can increase the original length of the contract by up to 25%. This can help if you realise the work鈥檚 going to take longer than you鈥檇 originally thought.

You must complete a contract change notice (CCN) if:

the total value of the contract is likely to increase
you need to extend the original length of the contract by more than 25%

If you鈥檙e a central government buyer, you may need to get spend approval.

If your requirements change so they鈥檙e no longer covered by the original scope of your contract, you must cancel the contract and start the buying process again. This is so:

you can find a service that meets your requirements at the best price
suppliers who might be more suited to the work have a fair chance to apply

A supplier can鈥檛 charge you more than the maximum price agreed in the contract. If you want the supplier to continue but you鈥檝e already paid the maximum amount, the contract will be invalid unless you fill in a CCN.

How to manage supplier performance

Have open and honest conversations with your supplier about how a project is progressing. When you need to measure a supplier鈥檚 performance, you should:

agree how you鈥檒l measure it upfront
meet regularly to discuss ongoing performance
identify any areas for improvement and agree how to make changes
discuss and document poor performance and give the supplier the opportunity to perform better by requesting an improvement plan

You can use the 鈥榖alanced scorecard鈥� in the Digital Outcomes and Specialists contract to help you set key performance indicators (KPIs) to measure performance.

Dispute resolution

If you disagree with the supplier about the work that鈥檚 being done and both parties have made all efforts to resolve the dispute, you should follow a dispute resolution process.

This should involve an independent third party, for example Acas, to:

oversee both sides of the dispute
make a decision
recommend a course of action

Read more about the dispute resolution process under 鈥榤anaging disputes鈥� in the Digital Outcomes and Specialists contract.

Ending a contract

If you think you might need to end a contract with a supplier earlier than you planned, you should talk to your internal legal advisor.

You can end a contract for:

convenience, for example if the contract is no longer required
a breach of contract, for example if a supplier hasn鈥檛 done everything they said they would
poor performance, for example if consistent poor performance hasn鈥檛 improved following an improvement plan

Where to get help

The Crown Commercial Service can advise you on procurement. You can phone 0345 410 2222 (Monday to Friday, 9am to 5pm) or email cloud_digital@crowncommercial.gov.uk for help.

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