Code of practice on joint working to deliver contracts

The National Council for Voluntary Organisations and services company Serco have produced a joint code of practice to support the VCS and private sector in working together to deliver public service contracts.

The guidelines have been drawn up after charities experienced problems delivering government contracts that use the prime and subcontractor model of working.

The new code of practice:

• Offers a guide to best practice in selecting partners and managing effective and sustainable relationships in the supply chain.
• Can help to deliver strong partnerships, which are beneficial to the primes and subcontractors, the service commissioners, and the individuals and communities using the service.
• Provides useful principles for consortia relationships.
• Can help organisations build longer term partnerships, potentially spanning multiple opportunities and sectors.

The code states that the delivery model should recognise and mitigate the risk of perverse incentives in the supply chain, such as the ‘cherry-picking’ of clients and also that prime contractors should consider themselves under obligation to deliver a service in collaboration with those organisations that formed part of their bid.

The code highlights the need for regular discussions between prime and subcontractors when referral numbers are lower than expected, and timely payment of the supply chain, particularly where this involves less financially secure groups.

Serco has pledged to follow the guidance and will encourage other outsourcing companies to sign up to the document.

To download the code of practice visit www.ncvo-vol.org.uk/sites/default/files/ncvo_serco_code_of_practice_april_2013.pdf.