Contract Performance Monitoring Under the Procurement Act 2023
The Procurement Act 2023 does not only influence how contracts are awarded. It also places greater emphasis on how contracts are monitored and managed once services begin. Insights across the Procurement Act 2023 knowledge hub alongside leadership guidance within the Governance and Leadership resource library highlight a clear expectation: adult social care providers must demonstrate governance systems capable of monitoring performance, identifying risks and supporting continuous improvement.
Commissioners are increasingly focused on contract performance data, quality assurance systems and leadership oversight. This means that governance arrangements described during procurement must translate directly into operational monitoring once services begin.
Why contract monitoring is becoming more important
The new procurement framework encourages stronger accountability throughout the life of a contract. Authorities are expected to monitor delivery more actively and ensure that services continue to meet quality standards.
For providers, this means contract performance cannot be treated as a passive reporting exercise. Instead, organisations must operate governance frameworks that actively review performance indicators, service outcomes and operational risks.
Operational example: performance dashboards in domiciliary care
A domiciliary care provider delivering multiple local authority contracts introduced a performance dashboard reviewed during governance meetings. The dashboard included key indicators such as missed visits, safeguarding alerts, staff turnover and service user feedback.
Service managers updated the dashboard weekly and leadership reviewed trends during monthly governance meetings. Where performance concerns were identified, targeted action plans were developed.
This approach allowed the organisation to identify operational risks early and demonstrate proactive governance during commissioner review meetings.
Operational example: monitoring supported living outcomes
A supported living provider delivering services for adults with learning disabilities developed an outcomes monitoring framework aligned with contract expectations.
Support plans included individual goals around independence, social participation and wellbeing. Progress against these goals was reviewed regularly by staff and aggregated into governance reports reviewed by leadership.
Where progress slowed or risks increased, service managers adjusted support approaches and discussed improvements during governance meetings. This structure ensured contract performance data reflected real service outcomes rather than administrative reporting alone.
Operational example: safeguarding governance across residential services
A residential care provider delivering services across several locations strengthened safeguarding monitoring within its governance framework.
Safeguarding incidents were logged centrally and reviewed monthly by senior leadership. Trends were analysed to identify recurring themes such as medication errors or communication issues.
Where patterns emerged, training programmes and supervision practices were adjusted accordingly. This proactive approach allowed the organisation to demonstrate strong safeguarding oversight during contract monitoring meetings with commissioners.
Commissioner expectation: visible performance governance
Commissioner expectation: Commissioners expect providers to operate governance systems that actively monitor contract performance. Providers should demonstrate clear oversight of key indicators including safeguarding, workforce stability, service continuity and user outcomes.
Regulator / Inspector expectation: well-led services delivering safe outcomes
Regulator / Inspector expectation: CQC expectations around well-led services require leadership oversight of quality and risk management. Governance systems should demonstrate learning from incidents, improvement planning and accountability across services.
Building effective contract governance systems
Providers delivering services under the Procurement Act environment must treat contract monitoring as a central element of governance. Leadership oversight, performance data analysis and continuous improvement processes are now essential to maintaining commissioner confidence.
When organisations integrate contract monitoring into governance structures, they strengthen both service quality and regulatory compliance. This alignment ultimately supports sustainable partnerships between providers and commissioning authorities.