Organisations sometimes concentrate so heavily on procurement and contract award that they neglect the management arrangements needed to ensure the contract delivers value. A review commissioned by King’s College Hospital NHS Foundation Trust provides a warning.
Reported in 2025, the review identified serious concerns in the relationship between the Trust and its facilities management subsidiary, KCH Facilities Management.
The review described contract management as poor or non-existent in some areas, with confusion over responsibilities and commitments contributing to strained relationships, operational problems and poor value delivery.
Although the review did not quantify an overall financial loss, its findings illustrate how inadequate contractual governance can expose organisations to unnecessary costs and reduced service value.
What were the underlying problems?
- Unclear responsibilities between customer and service provider.
- Poor understanding of contractual commitments.
- Weak governance and accountability.
- Ineffective relationship management.
- Insufficient monitoring of contractual outcomes.
Contract management is not simply about enforcing contractual terms. It is about ensuring that both parties understand and deliver their obligations.
An effective contract management framework requires clear roles, defined service levels, measurable KPIs, documented governance arrangements and effective escalation procedures. Without these controls, organisations risk paying for services.
The “live” tutor led WorldCC Contract Management Practitioner course, 16 – 20 November 2026, provided by DPSS, helps professionals develop the skills needed to identify contractual risks, manage change, monitor supplier obligations and protect financial value.
www.dpss.co.uk
