Mitigating the risks of expiring procurement contracts doesn’t have to be complicated

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Published: 27th May 2021

Did you know that it is not legally possible to revive an expired contract?

By law, a contract no longer exists once it has expired. Contracts are essential to mitigate risk, secure discounts, and acquire goods and services. This article offers great insights on risk management for local government.

Common risks to consider when a supplier contract expires:

1) Operational Risks: suppliers are no longer obligated to comply with terms and conditions, and gaps in supply or services may occur, affecting health and safety, insurance, and more.

2) Price Increases: you risk being unable to secure a new contract or re-negotiate an existing contract for a similar price. You can suddenly be charged market rate, which can be higher than the contracted rate.

3) Compliance Risks: violation of rules and regulations, and non-compliance with internal policies and procedures can jeopardise your WHS, environmental, and/or quality standards.

Peak’s Procurement experts can help you:

Comply with Local Government Regulation 2012,
Pro-actively manage active contracts,
Re-new or establish new contract arrangements for goods and/or services,
Develop a contract register,
Manage insurance,
Negotiate contract extensions.

By ensuring your contracts remain up-to-date, we reduce the risk of suddenly compromising your operations and the potential impact to the bottom line.

We can assist with any procurement category, below are the most common:

Facilities management

Fleet management

Waste, Design and Construction

Peak Services Procurement Office can be engaged via:

State Government Standing Offer Arrangement (DSDMIP-0972-18 – Local Content – Specialist Procurement Services).
Local Buy Panel Arrangements for Project Management Services (Contract No. LB279), Business Management Services (Contract No. BUS272), and Engineering & Environmental (Contract No. BUS262).

For more information on our Technical Consulting Advisory Services, contact Brian Jackson, Director – Consulting and Technical Advisory Services on 0467 767 825.