Guide 7:
Managing economic benefits in the contract
Economic benefits are only realised through the delivery of the contract.
Manage the contract to deliver economic benefits
Economic benefits are generated during the delivery of a contract. For this reason, good contract management is important to ensure the agreed outcomes are achieved in line with the contract.
Further guidance and templates to ensure effective contract management and planning are available:
Performance measurement and reporting
Indicators, or KPIs, are measures that identify if an economic benefit has been achieved. Benefits realised from contracts should be tracked over time and incorporated into regular procurement performance reporting for your agency.
Indicators need to be:
- relevant
- consistent
- timely
- easy to interpret.
Your agency will be collecting data, so think about:
- who will collect the data
- how it will be collected
- where it will be stored
- how it will be reported.
Your measurements can be a mix of quantitative (for example, how many jobs were created) and qualitative (for example, case studies to support the numbers).
This handbook includes 7 'model' economic benefits, and guidance for these includes example indicators.
You can use these indicators and KPIs directly if they suit your organisation, or adapt them to your own context if needed.
While these indicators have been developed for use in supplier contracts, they also may be used or adapted by your organisation to track trends and performance over time.