An estimated £407 billion, which is around one third of public sector spending (£1.2 trillion) was spent on procuring goods and services in 2023-24. However, public procurement is largely decentralised, with many public sector and private sector organisations operating within the system.

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The risks and opportunities to deliver value for money for the taxpayer merits ongoing focus by all public authorities. This good practice guidance has been updated in response to the implementation of the Procurement Act 2023. It reflects upon findings and recommendations drawn from 200 reports concerning over 300 commercial arrangements that have been published over the past 20 years.

The ‘commercial lifecycle’ means the entire process starting with the identification of a requirement that may be delivered by a supplier to government through to the selection and appointment process, contract management activity, and ending with contract termination or transition to alternative arrangements.

This is a revised and condensed edition of commercial good practice guidance that we have updated regularly since 2008. It remains essential reading for policy and commercial staff involved at all levels of public procurement and commercial activities – including senior leaders and non-executive board members of public authorities.

The guidance is presented in ten sections, addressing both strategic and procedural considerations. We provide a definition for each section, list our expectations based on the lessons we have drawn from our reports, and give our view as to what needs to improve. Each section is also supported by case studies from our reviews to provide relevant context

To support this guidance, we have also updated our guide on the Commercial Audit Framework, which highlights the key questions you should be asking at each of the ten key stages of procurement. Whether it’s the commercial strategy for public procurement, the publication of good-quality, relevant information on a timely basis, or deciding whether to extend your contract or re-procure.

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