Why Contract Monitoring Is Where the Real Work Begins

For many organisations, the end of a procurement process feels like the finish line. The tender has been completed, the preferred bidder selected, and the contract formally awarded. However, that’s not the end of the journey – it’s the beginning of the most important phase.

Ensuring that a supplier delivers exactly what was promised during the tender process requires ongoing vigilance through effective contract monitoring. Without it, even a well-run procurement exercise can fall short of expectations, leading to service issues, missed value, or wasted expenditure.

This blog explores what to monitor, how to do it effectively, and why proactive oversight pays off in both performance and partnership. It is a fact that suppliers who are properly monitored consistently outperform those who aren’t.

If you prefer you can watch a webinar that Lorraine ran on this subject.

Contract Monitoring: An Essential Element of Procurement

Contract monitoring is often overlooked, but it is absolutely fundamental to achieving value for money. It ensures that suppliers meet their obligations, that services remain consistent, and that performance does not decline once the “honeymoon period” has passed. While in an ideal world every contract would be closely monitored, in practice limited time and resources mean schools and Trust must prioritise. The contracts most deserving of attention are typically those of higher value or complexity – such as catering, cleaning, ICT managed services, planned and preventative maintenance, and grounds maintenance.

Among these, catering and cleaning stand out as two of the most commonly outsourced and operationally complex services. For this reason, the focus of this blog is on these two key areas. In addition, there are a lot of similarities between catering and cleaning contracts in terms of what you should be monitoring.

Monitoring From ‘Cradle to Grave’

Effective monitoring should begin at the very start of the process and continue right through to contract close.

Mobilisation: Ensure that all promises made during tender are being delivered, from staffing structures to quality standards.
Ongoing delivery: Maintain regular oversight to prevent any decline in service once the initial enthusiasm fades.
End of contract: Confirm that all obligations have been met, assets returned, and any financial reconciliations completed.

This cradle-to-grave approach provides assurance throughout the life of the contract and prevents issues from going unnoticed until it is too late to rectify them.

The Importance of Regular Meetings and Structured Agendas

A crucial element of monitoring is holding regular, formal review meetings with your contractor. These should be scheduled from the outset – ideally written into the mobilisation plan – and include a set agenda to ensure key topics are covered consistently. These meetings not only monitor contracts but help to create stronger, more positive relationships between you and your supplier.

Taking minutes is vital. Written records provide continuity if staff members move on and form an auditable trail of decisions, actions and performance outcomes.

Recommended agenda areas include:

For Catering Contracts:

Operational performance and service delivery
Menu changes and compliance with nutritional standards
Staffing levels and training updates
Review of any quality audits
Key performance indicators (KPIs) and service level agreements (SLAs)
Financial performance and budget tracking

For Cleaning Contracts:

Hours delivered versus hours budgeted
Staffing, absence and training
Quality audits and service standards
Health and safety compliance
Finance, KPIs and SLAs

These meetings should be more than just problem-solving sessions – they’re opportunities to review progress, celebrate successes, and plan improvements.

Financial Monitoring: Avoiding Hidden Errors

Financial scrutiny is one of the most valuable yet frequently neglected ass of contract management.

For catering contracts, organisations should:

Request monthly invoices supported by a detailed trading account showing income streams, labour costs and overheads.
Compare these figures to the budget submitted during tender – a document often known as the “Budget versus Actual” or the BvA.
Identify any discrepancies early, such as duplicated sales, incorrect hospitality charges, or missing credits.

Even small financial errors can add up quickly. By checking invoices against trading data each month, organisations can prevent overpayments and maintain transparency.

For cleaning contracts, where payment is often based on a fixed number of contracted hours, monitoring is equally vital. Ask for:

A log of hours worked versus budgeted hours
Proof of attendance (for example, signing-in sheets or payroll data)
Credits or compensatory cleaning time for unworked hours

This ensures you only pay for services actually provided and that contractors remain accountable.

Essential Documentation to Request

To manage catering and cleaning contracts effectively, the following documents are invaluable, some of which you may have and some which need to be supplied regularly by the contractor:

Catering:

A phased copy of the annual budget (broken down month by month)
Copies of all invoices issued to date
Monthly trading accounts showing income and expenditure
Records of free issues such as hospitality, universal infant free school meal (UIFSM) and free school meal (FSM) numbers
Current menu
DBS details of staff
The signed legal agreement
KPIs, SLAs and any supporting quality audits
Revised budgets for the forthcoming contract year, ideally three months before renewal

On one occasion we discovered £36,000 in budget discrepancies purely through a diligent review of the second year catering budget versus the one in the tender. This was for a mid-sized primary school, not a large MAT. Clear proof that oversight translates directly into savings.

Cleaning:

A comparison of actual versus budgeted hours worked
Copies of invoices and a periodic works plan (ideally presented as a Gantt chart)
A completed labour schedule
The cleaning specification
DBS details
KPIs, SLAs and recent quality audits

Having this documentation to hand allows for consistent monitoring and quick identification of any irregularities.

KPIs: Setting Clear Expectations and Enabling Accountability

Key Performance Indicators (KPIs) are at the heart of contract management. They define success, measure performance, and – importantly – provide a mechanism for intervention if things go wrong.

Your legal agreement should explicitly state that persistent failure to meet KPIs may constitute grounds for early termination.

Effective KPIs should be:

Clear – easily understood by all parties
Measurable – supported by objective data
Scored – for example, 0 = fail, 1 = satisfactory, 2 = excellent
Threshold-based – with defined pass marks (e.g. ≥80% to pass)

Avoid vague indicators such as “number of defaults issued” or “customer satisfaction” without a clear methodology for measurement. Define precisely how each KPI is assessed and how often.

When well designed, KPIs do more than flag underperformance – they highlight excellence too. Recognising success strengthens relationships and promotes continuous improvement.

Quality Audits and Performance Reviews

Regular quality audits provide valuable evidence of service standards. Many organisations use a RAG (Red–Amber–Green) system to highlight areas needing improvement.

For example, if a cleaning contractor’s audit score drops below 80%, it might trigger a management-level review. This early warning system enables issues to be addressed promptly, maintaining high standards throughout the contract term.

Audit outcomes should be recorded, shared and discussed at monitoring meetings, forming part of the overall KPI review.

Why Monitoring Delivers Real Results

If monitoring is not in place, you cannot retrospectively prove non-performance – and that can make managing disputes or contract exits extremely difficult.

The benefits of proactive monitoring include:

Early intervention: Problems are identified and resolved before they escalate.
Financial control: Errors, omissions and overcharges are detected quickly.
Positive relationships: Regular engagement fosters collaboration and trust.
Improved performance: Monitored contractors consistently deliver higher standards.
Robust evidence: Documentation provides protection if the contract must be terminated.

In Summary

Contract monitoring isn’t simply an administrative exercise; it’s a strategic necessity. It ensures that procurement outcomes are realised, performance remains high, and both parties enjoy a transparent and mutually beneficial relationship.

Those schools and Trusts that invest time in structured meetings, financial checks and KPI reviews consistently achieve better outcomes, fewer disputes, and stronger partnerships.

It is a fact that suppliers who are properly monitored consistently outperform those who aren’t.

The message is clear: the real work begins after the contract is signed.

At Minerva, we are absolutely committed to the importance of contract monitoring. If you want to read further about how to run contract monitoring meetings or dig deeper into contact monitoring around specific contract areas, then please read our blogs on:

Getting the Best Out Of Your Services: The Foundation of Good Contract Monitoring

Getting the Best Out Of Your Services: Catering Contract Monitoring

Getting the Best Out Of Your Services: Cleaning Contract Monitoring

Getting the Best Out Of Your Services: Formal Review Meetings