Client and contractor roles in a changing local government environment

Abstract

The advent of Compulsory Competitive Tendering (CCT) exposes large swathes of local authority services to private sector competition. The challenge facing those in local government who wish to protect in‐house services is how to adjust to a new commercial contracting culture without losing the values of public service.

The Audit Commission argues that such a culture requires a hard split between the Council as a client, who sets service standards and ensures value for money and its contractor side that concerns itself with performing to standard and price.

This article looks at both the legal and operational impetus for such a client‐contractor split, from a DSO (Direct Service Organisation) perspective, and examines the strategic issues raised for local authority reorganisation.