Performance & Contract Management

Standards module

v3.1 

Whilst the focus of contract management is usually centred on ‘corporate’ contracts, this module applies to ALL types of contract, whatever their size or value - corporate, supply chain or service user/carer.


Effective performance and contract management is proactive - it involves monitoring and review to ensure that what is agreed is actually delivered. It ensures that financial and operational risk is minimised and that delivery is maximised. Most importantly, it is about securing continuous improvement whilst demonstrating accountability. 

Key outcomes


  • Contractual relationships will provide the framework from which meaningful partnerships can develop to achieve better outcomes for customers, service users and carers   
  • Fundamental objectives of performance measurement will be embedded within organisational culture so that the process does not become an end in itself
  • Quantitative and qualitative metrics will be identified and measured to ensure a balanced view of performance and quality – these should also be aligned to wider system objectives

Audit process


The Audit Process will seek robust evidence that the key outcomes have been met. 


As a minimum, TEC Quality certified organisations must: 


  • Demonstrate that a defined governance framework is in place ensuring accountability for the delivery of services   
  • Provide evidence that service delivery and organisational performance is monitored and reported on to the Board, or equivalent.
  • Demonstrate that analysis of performance data drives organisational improvement   
  • Demonstrate that the delivery of TEC is underpinned by clearly defined contractual arrangements – whether with individual service users, corporate customers or supply chains   
  • Ensure that users are provided with pre-contractual information, enabling them to make informed choices when considering TEC. This must include clarity around price, payment options and minimum terms   
  • Provide evidence that procedures are in place for the acceptance/termination of service and that this is set out in information provided to the user prior to the commencement of service   
  • Measure and place equal importance on the evaluation of qualitative outcomes, such as feedback from commissioners and service users and carers, to the achievement of quantitative targets i.e. KPIs   
  • Where the delivery of any elements of service covered by the QSF are provided by a subcontractor, who are not certified to the QSF, the auditee organisation shall evidence that the subcontractor complies with the requirements of the relevant QSF service delivery modules. 
  • Provide evidence that there is a procedure and process in place for monitoring and analysing performance in all service and key areas of the business, which shall drive service improvements. This analysis shall be conducted at least monthly.   
  • Provide evidence that analysis of exceptions to the Measures of Excellence and any contractual key performance indicators is undertaken and corrective action implemented. This analysis shall be conducted on a monthly basis as a minimum. Note: The TEC Quality ‘Measures of Excellence’ guide, explains how this is approached.

Evidence might include



  • Pre-Service Commencement Contract Negotiation
  • Minutes of Contract Meetings
  • Contract Extension Negotiation
  • Performance Management Framework

Contract Examples:

  • Service User, Local Authority, CCG, Housing Commercial Arrangements which Incentivise: Risk/Reward, Payment by Results, CQUIN, QIPP
  • Performance and Quality Dashboards
  • Detailed Analysis of Performance
  • Quality Plan 

“Far from being the traditional red tape and stifling bureaucracy that many experience, good quality performance and contract management approaches can be both the foundation to showing how well we are achieving our objectives and delivering outcomes and an enormously liberating force. The former is the evidence of our joint achievement and the latter how meaningful partnerships can deliver better care outcomes.”


Mark Allen, Strategic Commissioning Manager, Hampshire County Council

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