Writing and managing a contract
Source: gov.uk (2025-02-25)

What to include in your school, academy or trust’s contract with a supplier, and how to work with them through the process.

You should get legal advice before entering into a contract.

Contracts should include:
- a detailed description of the goods, works or services you’ve agreed to buy, linked to your specification
- a pricing schedule of what will be paid when
- terms and conditions
- the level of service you want
- any contract management arrangements, such as regular meetings or contact
- an ‘implementation plan’ saying who is responsible for what – for example, if you’re buying ICT equipment, who’ll do the cabling and install it
- what happens at the end of the contract
- your specification (https://www.gov.uk/guidance/buying-procedures-and-procurement-law-for-schools/writing-a-specification) as an appendix
Department for Education approved contract training

You can now register for the free Department for Education (DfE) approved contract management training course.

The course aims to give you the knowledge, skills and confidence to manage your contracts effectively. This way you can get the best value for money.

The training is suitable for anyone within a school or multi-academy trust (MAT) who is responsible for managing contracts, not just those in a specific commercial role.

How to access the training

The course can be found on the Government Commercial College (https://www.govcommercialcollege.co.uk/login/index.php) site.

Schools should already be registered on the site as part of the Transforming Public Procurement (TPP) programme, or can register for an account.

Once logged in, you can access the course by selecting ‘Find Learning’ at the top of page, then searching for ‘Contract Management Foundation’.

Sub-contractors

If your supplier is employing another company to do some or all of the work, it’s the supplier’s responsibility to make sure they have the appropriate:
- health and safety policies
- insurance
- professional qualifications
- certification
Make sure that this is clear in the contract. You may want to seek legal advice on sub-contractor warranties.

Terms and conditions

Suppliers might ask to change your contract’s terms and conditions or use their own. If it’s important to you to use your own, you should state this in your invitation to tender.

Check that the signed contract the supplier sends back to you is exactly the same as the copy you sent them. The last copy of the terms and conditions sent by either side is the one that is legally binding, so make sure that you are the last to sign.

Service levels

Decide the level of service you want from the supplier.

You may want a service-level agreement (SLA) with them as part of your contract, especially if there will be ongoing support or maintenance.

The supplier may offer you a pre-set SLA as part of the contract. You may want to adapt this or write your own, but some suppliers will charge extra for that.

Your contract should also include key performance indicators (KPIs). These monitor how the supplier is performing. Good KPIs should:
- set targets. such as things you need fixing within a specific time
- set the quality of service you want, such as timeliness or reliability
- set the level of service you want
- be measurable
- help you check you are getting value for money
- specify what happens if the service is poor, such as money back
Make sure you already collect the information you need to monitor your KPIs. If not, you’ll need to set up new systems for this, or get the supplier to do it.

Review the KPIs with the supplier as part of regular contract update meetings.

Exit strategy

If your contract is complex, high-value or high-risk, include an exit strategy. This should set out:
- what everyone is responsible for if the contract expires after its specified completion date, you end the contract early or you end the contract with immediate effect
- who owns what at the end of the contract
- what information the supplier will provide, by when and under what circumstances
- what access the supplier will allow to procedures, systems and people, and when and how they will allow it
- what the supplier will do to support the contract ending
- how long the supplier will give support while you change to a new supplier
- who pays for what, by when and how
- under what conditions either side can end the agreement, such as if the supplier does not meet the service level agreement, there are changes in circumstances or there is any misconduct
Develop a contract management plan

Plan how you’ll manage your contract. Include:
- who’s responsible for what
- how you’ll monitor your KPIs
- timescales for resolving problems or poor performance
- having regular meetings with the supplier
- procedures for raising problems and resolving disputes
- how to make changes to the contract
- which of your staff will be involved
- payment terms
- an exit strategy
- how you’ll monitor the supplier’s financial stability
You should have plans in place in case things go wrong, such as your supplier becoming insolvent.

Regular review meetings

You should have regular meetings with your supplier to discuss:
- their progress with any work
- where they are doing well
- any problems and what to do about them
- any changes that are needed
- planned maintenance
- upgrades or improvements
Keep notes of the meetings, including anything you agree to do and by when it will be done. Share the notes with your supplier.

If they take the notes, make sure any agreements you make are included.

Varying a contract

If you need to make any changes to the contract, use a variation agreement.

Contracts will have rules on variations in them, so check first. We recommend that you get legal advice.

Extending a contact

If you included an option to extend your contract in your original invitation to tender, you can extend it for the length of time you set, using a variation agreement.

If you did not include this option, you can only extend it in certain circumstances. Seek legal advice or contact the DfE.

The end of the contract

Plan for the end of the contract in advance, including:
- returning the supplier’s equipment
- ending any joint arrangements
- getting rid of unwanted items
If you want to end the contract early, follow your exit process. Make sure there is a termination clause in your contract.

Reviewing the whole process

Carry out a formal review at the end of the contract. Talk to the people involved and, if it’s appropriate, the people who used the service or product. Look at how the supplier performed and what you’ve learned.

Keep a record so others handling contracts can take it into account.

The Procurement Act 2023

Under the Procurement Act 2023 you will need to understand your obligations with regards to contract management and the publishing of appropriate notices.

The section Get training on the Procurement Act 2023 (https://www.gov.uk/guidance/buying-procedures-and-procurement-law-for-schools/get-training-on-the-procurement-act-2023) has information on how to:
- get free, approved DfE training on the Procurement Act 2023
- register on the central digital platform
Find out more from the update for schools and trusts on the Procurement Act 2023 (https://buyingforschools.blog.gov.uk/2024/11/19/update-for-schools-and-trusts-on-procurement-act-2023-are-you-ready/).