Title

BUSINESS

There's more than just economics to a contract's value

Procurement can and must be based on more than just financial value, writes Mike Britch.

A recent report by the Centre for Local Economic Strategies (CLES) has suggested that local authorities should award contracts based on the social value to the community instead of only considering budgets and timeframes. And so say all of us. Procurement can and must be based on more than just financial value – this is an approach that Norse Group takes both to our own purchasing of goods and services and to the bids that we make to supply local authorities.

Naturally, cost, compliance and risk will always be key considerations in procurement. Ignoring the economics altogether would be as irresponsible to local residents as making decisions on a purely financial basis. But buying decisions have the power to deliver substantial benefits to local businesses, local communities and the local economy, so this has to be a factor.

When the Norse Group tenders for contracts with local authorities we are clear to highlight what we can deliver for communities. Our social value policy sets out how we deliver services in ways that produce wider benefit to the community and capture longer-term savings for our clients and partners. Social value is at the heart of service delivery and built into the decision-making process of every operation. We draw up an agreement with each partner, ensuring that we understand the specific local needs and deliver projects that are aligned with this. Procurement decisions are made considering the percentage of local spend and providing opportunities for SMEs. Recruitment considers targeting vulnerable groups, who might not access traditional recruitment methods.

Our commitment to being a responsible business, through what we call The Norse Way, has a significant impact on our ability to successfully win and deliver contracts, and so we have a responsibility to drive this through our own supply chain. Adopting a progressive approach to procurement is a win-win for client, supplier and, most importantly, communities, so I applaud the CLES report and the work by Manchester City Council on which it was based, and urge public and private sector organisations to follow suit.

BUSINESS

Councils can't deliver better public understanding of AI without resource

By Susan Oman | 10 April 2026

Better AI awareness is needed both inside and beyond the council in its communities, says Susan Oman.

BUSINESS

Putting prevention first

By Matthew Ashton | 09 April 2026

Prof Matthew Ashton says investing in our communities and places, and delivering on the promise of prevention, are key to reversing the rising levels of illn...

BUSINESS

From spreadsheets to services: How Fair Funding is starting to reach communities

By Sally Jameson | 09 April 2026

Having worked hard to secure the Fair Funding Settlement, the responsibility now is to show clearly how it will be used on the ground, says Sally Jameson.

BUSINESS

EXCLUSIVE: Ministers face legal threat as furious Sussex leaders demand answers on reorganisation delay

By Dan Peters | 09 April 2026

Sussex leaders are to demand ministers fully explain why they have delayed a final reorganisation decision, or they will consider launching a judicial review.

Popular articles by Mike Britch