Description of risks to contract performance
Whilst there is an expectation the successful bidder will have robust governance, business continuity and risk management arrangements in place, it is recognised that certain external factors could impact the delivery of the contract. These risks are largely outside the direct control of either party but are actively monitored and mitigated wherever possible.
Local and regional risks may include workforce availability challenges, industrial action, local infrastructure disruption, or supplier failure within the regional supply chain. Changes in local authority policy, funding pressures, or community demand could also influence service delivery expectations. It is expected these risks will be mitigated through workforce planning, strong supplier management, contingency arrangements and close engagement with local stakeholders.
National risks include changes in legislation, regulation or public policy that affect employment, health and safety, data protection, or service standards. Economic pressures such as inflation, increased energy costs, or labour market shortages could impact operating costs or resource availability. There is also the potential for national industrial action or public sector reform to affect performance. There is an expectation these risks are attempted to be managed through horizon scanning, flexible financial planning, compliance monitoring, and adaptive service models.
International and global risks include major events such as pandemics, geopolitical instability, war, terrorism, or global supply chain disruption. These events can lead to workforce shortages, increased costs, reduced availability of materials or services, and changes in customer behaviour or demand. Climate-related events and global economic volatility also present longer-term risks. There is an expectation these risks are attempted to be managed through business continuity planning, diversified supply chains, remote and flexible working capability where appropriate, and regular review of emergency response arrangements.
Overall, it is hoped that whilst these risks could impact the contract if they materialise, a proactive and proportionate approach to risk management will help to alleviate them in all but the worst-case scenarios.