Projects are justified by the benefits and value they promise but, in traditional procurement, contracts are not made around outcomes but specification and price. If suppliers are rewarded by results, then how can outcomes be defined, benefits measured, responsibilities identified, and risk and value shared in a way that is unambiguous and fair to both parties?

Context:
Driven by austerity, competitive pressures and shareholder value, organisations are focusing more on the delivery of value and realisation of benefits. This is changing the way project and procurement professionals are measured and in turn is influencing their approach to procurement.

Rather than defining how a result should be delivered or what the end result will look like, buyers are moving towards defining the outcomes they want and rewarding suppliers based on the results achieved. This demands different approaches to engaging with the market before formal procurement, and a greater focus on monitoring delivery after award.


Purpose
This 2½ hour interactive event aims to raise questions and give answers on how you engage and contract with vendors based on benefits and value. It looks at some of the advantages and possible pitfalls, and the approaches available to private and public sector buyers.

The workshop will mix short talks to introduce a topic, round-table contributions, and facilitated visual discussions to explore the sub-topics. Participants will be expected to contribute by sharing their experiences, concerns and solutions. It is expected that the session will help form the basis for a ‘white paper’ that will capture the key findings.


Outline agenda:
Quick introduction and participant introductions.

Why is this important?   Hugo Minney

• The advantages of adopting a benefit driven commissioning strategy
• And some possible pitfalls
• Benefits real and potential – the group

Contracting strategies:   Jon Broome

• Typical contract strategies for procuring for benefits
• How else have people done it?
• How else could we do it? – the group
  Pros and cons of the above. Visual facilitated session

Unlocking Provider Value:  Ian Heptinstall

• Engaging in the ‘pre-procurement’ stage
• What do you pre-qualify providers against?
• Fostering collaboration and partnership
• Possible win-win-win commercial arrangements

For more information and to book your place, please visit the APM events page.

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