Having all school contract details in one place is one thing. But using the information on a day-to-day basis to keep spend under control is another. Knowing when contracts start, end, and renew is key to ensuring you get best value time and time again.
Contract management: Proactive renewals
If you’re unaware a contract is set to auto-renew, there’s likely to be some costly implications further down the line (think a 10% price increase!).
Consider how (or even if) you’re notified a school’s contract is coming up for renewal. Are you proactive and call them before the renewal date? Or are you reactive and wait for them to call you?
Most suppliers won’t call you before the renewal date – they'll wait to call you after, when you’ve effectively already locked into another term. Proactivity is key
How to find the right contractors and suppliers for your school
We hope you’re happy with the contracts and suppliers that serve your MAT. But if you’re not, or you’re running a procurement exercise to make sure you’re getting best value, there’s one thing you need. Time! That’s time to review the contracts you have in place, and compare against other suppliers.
If it’s a particularly large contract you’re looking to change, this could take weeks, if not months.
Make sure you’re aware of notice periods. Some will be the more standard 30 days, some could be 60. Some might even be six months! Make sure you’re giving yourself enough time to go out to tender or get quotes.
Supplier management: Understanding contract terms
With time on your side, you’re primed to look at current and alternate contracts in granular detail. For instance, did you know contract terms aren’t standard across all products or services, even if the same supplier is used across your MAT’s schools? Suppliers can tweak the terms of their contracts depending on who they’re serving, when they started, and more.
Take the same broadband provider as an example – their contract might be set to auto-renew at one school in your trust but could cease at another when the contract ends.
Stephen advises you should remember that not all contracts start and end conveniently around your financial year. “For example, some will be set to renew over the summer, which so happens to be the most popular time for staff to take leave. If no-one’s aware the contract is coming up for renewal, you could find yourselves locked into another lengthy term contract – and one that you have little control over.”
Avoiding costly oversight
If you’re involved in school supplier management, it’s obvious there’s certainly plenty to think about! To wrap up, Stephen’s sharing a final piece of contract management wisdom: one of the most common mistakes we see from schools and MATs.
“Some only record the largest/most significant contracts. It makes sense, it’s a big outlay after all. But the smaller contracts that often get less attention slip through the gaps. If you add them up, you’ll be surprised to see how much they cost you – and how much you could save if you took a more proactive approach to managing them.”
Ready to make contract management more effective?
We hope you’ve found Stephen’s advice useful. For more ways to improve contract management at your school or MAT, reach out to our friendly team.
We’d love to show you how our school compliance software, Every Compliance By IRIS, is supporting SBMs with more visibility over the contracts in play at their organisations!
