Page 143 - Procurement guidelines for smart sustainable cities - A U4SSC deliverable

4.4.3 Manage contract changes

Work with suppliers to manage any changes during the contract.

Why it's important

Changes during a contract are often necessary, particularly in the case of complex technology
projects where there may be a need to adapt and iterate how outcomes are delivered. Any contract
changes need to be managed carefully to ensure that public officials and stakeholders avoid any
legal or corruption risks.

What it means

What public officials and stakeholders can and cannot change during a contract will be informed
by the terms and conditions agreed with the supplier. In outcomes-based contracts, appropriate
changes are allowed providing that:

• the supplier still delivers the outcomes that public officials and stakeholders have defined;
• there is no impact on value for money for their organization; and

• the changes fall within any contingency margin; for example, when extending a contract length
by a certain percentage.

It may still be possible to make more significant changes providing that public officials and
stakeholders:

• agree the change in writing with the supplier;
• approve any change in budget with senior stakeholders;

• assess any impact on services for end-users; and

• publish details of the changes online.

If public officials and stakeholders’ requirements change significantly so that they are no longer
covered by the original scope of their contract, they should cancel the contract and start the buying
process again. This is so that:

• they can find a service that meets their requirements at the best price; and

• suppliers who might be more suited to the work have a fair chance to apply.

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