
Local authorities should be wary of reserving contracts for local suppliers, as recommended by Procurement Policy Note (PPN) 11/20. Other contracting authorities may want to maximise their use of this
Encouraged by a series of non-binding Public Procurement Notes, contracting authorities have taken an active role in supporting their contractors to ensure that in the “new normal” their supply chains remain intact and that essential public services can be discharged.
Disputes are never ideal, but they often allow for a re-evaluation of relationships that can be for the better in the long term. As contracting authorities and their suppliers continue their emergence from survival into recovery mode, it is highly likely that the experience of the pandemic and how it has left the country will prompt a number of discussions.
There might be negotiation about how the contract operates and, in some cases, there may well be a dispute. That dispute may never progress to a formal process, but it will need to be resolved.
From our extensive experience of advising contracting authorities and their suppliers across of range of informal negotiation and informal/formal disputes, we have set out below a range of considerations for managing this dialogue with suppliers:
The issue
The contract
Public procurement
Redlines
Ideal outcome(s)
Once you are clear what your redlines are, establish what your ideal outcome or outcomes would be. These will form the basis of your negotiation strategy.
Negotiation strategy
With the redlines and ideal outcomes in mind, decide how you are going to present this to the supplier.
Governance
When setting your negotiation strategy, be clear what authority you have to negotiate/agree.
Write it down
If you have any queries arising from this article, please contact Emma Riley or Alex Lawrence.
Local authorities should be wary of reserving contracts for local suppliers, as recommended by Procurement Policy Note (PPN) 11/20. Other contracting authorities may want to maximise their use of this
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