Annex A – Example Text and Key Performance Indicators (KPIs)

The example text within this Annex should be read in conjunction with the Commissioning and Pre-procurement guidance and Procurement guidance. If using one of these examples, it should be amended to reflect the local circumstances with respect to the individual procurement, the organisational strategies or plans or specific organisational objectives.

Text for Procurement Documents

‘Community benefits are included in this requirement. For more information see: https://www.gov.scot/policies/public-sector-procurement/community-benefits-in-procurement/. A summary of the expected community benefits have been provided as follows: [work with local authorities to ensure youth (employment) opportunities is a fundamental community benefit].’

‘Under this [contract/framework] the contractor will be required to support the authority's economic and social regeneration objectives. Accordingly, contract performance conditions may relate in particular to social and environmental considerations.’ 

‘Under this [project/contract/programme] the contractor and its supply chain will be required to actively participate in the achievement of social objectives relating to participation in the skills development, employment and training programmes in accordance with the [client]'s Employment and Skills Strategy, which can be found at [insert web address] and other added value contributions by the contractor and its supply chain in order to support community programmes promoted by [client]. Accordingly, the contract performance conditions may relate in particular to secondary considerations.’ 

Supplier Selection Criteria

'When answering question Relevant Examples 4C.1 of the SPD, please describe the documented arrangements that it has in place for providing its workforce with inclusive quality-related training and information appropriate to the type of work for which this organisation is likely to bid.’

'In answering question Relevant Examples 4C.1 of the SPD, please describe your experience of incorporating measurable social, economic and environmental outcomes for [insert priority group] or other, disadvantaged groups into previous contracts, including details of any specific steps taken in the design of services to increase employment and training opportunities.' 

Text for Specification

Contract example 1

'Relevant to its core purpose of [core purpose], [contracting authority] is seeking to maximise social considerations that can be delivered through performance of the contract. This contract for [goods/services/works] includes the following KPI's/requirements on the contractor:

• [develop a programme to work closely with community organisations in performance of the services to maximise value to the end-user of the services]
• [develop a programme to work closely with educational establishments to maximise educational opportunities that arise through performance of the contract] 

Deliver [insert the number for each category]

• work placement (14-16 years)
• work placement (16-19 years)
• curriculum support activities
• graduate trainees
• apprentice starts
• existing apprentices
• apprentice completions
• jobs advertised through local employment vehicles
• N/SVQ starts for subcontractors
• N/SVQ completions for subcontractors
• training plans for subcontractors
• supervisor training for subcontractors
• leadership and management training for subcontractors
• advanced health and safety training for subcontractors’ 

The Contractor must deliver the above community benefit activities in accordance with the Delivery Schedule included at Schedule [X]. All activities must commence no later than [X weeks/months] following the Contract Commencement Date, with full delivery required by [insert final delivery date or project completion milestone]. Any deviation from the agreed timescales must be notified to the Authority within five (5) Working Days with a proposed recovery plan.

The Contractor will be required to report to the Authority as part of their [Interval – monthly/quarterly/other] Management Information reporting, details of any community benefit measures and achievements.’

Contract example 2

‘The [contracting authority] aims to maximise sustainable jobs and training gains arising from its works programmes and to assist contractors and specialists or sub-contractors to consider how they alleviate skills gaps. 

The [contracting authority] is committed to ensuring that for this contract, a minimum of xx% of the total labour required to deliver the project (including those works delivered by specialists, or sub-contractors) must be delivered by New Entrants (defined …) that have an apprenticeship, trainee or employment contract with the successful Contractor, their specialists or sub-contractors, and are engaged in a training programme that is accepted by the [contracting authority], (an SVQ, or equivalent but other qualifications and training will be considered such as Health & Safety training). 

The contract contains performance measures in respect of this commitment. In addition, the [contracting authority] expects the Contractor to provide training and upskilling opportunities for existing employees.

The Contractor must achieve the minimum New Entrant labour requirement progressively throughout the contract, with initial recruitment commencing no later than [X] weeks after Contract Commencement. The Contractor shall submit a Labour and Skills Delivery Plan within [10] Working Days of contract award, setting out monthly/quarterly delivery milestones. Final compliance with the xx% requirement must be demonstrated no later than [Project Completion Date or Stage X]. Failure to meet an agreed milestone triggers an obligation to submit a corrective action plan within five (5) Working Days.’

Contract example 3

‘The Contractor is required to secure the creation of employment and training opportunities in connection with the contract. The specific targets for these opportunities are to be specified within the Contractor’s Employment Skills Plan (ESP), this will be developed during the Mobilisation Phase.

The Contractor should seek to secure such opportunities through targeted recruitment and training from priority groups of the long term unemployed, other priority groups such as women, racialised minorities and disabled people and those further from the job market. The Contractor should demonstrate a robust methodology for engaging and recruiting from these groups.

The Contractor must submit the draft Employment Skills Plan no later than [X] working days following contract award, with final approval required prior to the end of the mobilisation phase. Delivery of all employment and training commitments must commence within [X] weeks of service commencement and be delivered in line with the timeline set out in the approved ESP. Any delays or risks to timely delivery must be reported to the Purchaser immediately, accompanied by a proposed recovery plan.

In addition to achieving the training, the Contractor must nominate a Client Coordinator who will be responsible for reporting progress against the ESP to the Purchaser during the Service Period.’

Contract example 4

‘Supporting methodologies are required for each Theme of the Community Benefits Menu to detail how bidders plan to deliver the community benefits offered.

Bidders are required to provide the following information within each methodology:

• name, job title and contact details of the person(s) involved in delivering Community Benefits outcomes
• details of how the outcomes offered will be delivered and the roles and responsibilities of the individual(s) involved
• the anticipated timeline for delivery of each outcome

It is recommended that the methodology provided for each theme considers the guidance outlined below and includes, but is not limited to details of the following:

1. Recruitment & Employment (EMP)

• how opportunities will be identified, publicised and managed
• the type and duration of recruitment and training opportunities which will be offered
• proposed engagement with partners, support organisations and educational establishments to assist delivery

2. Skills & Training (SKL)

• proposals for engagement with schools, colleges, and other partner and support organisations
• proposals and content for educational engagement events
• details of the type and duration of any work experience placements to be offered’

National / Sectoral Framework example 5

‘In establishing this Framework, it is recognised that Framework Public Bodies may place an emphasis on various social considerations, often in the form of pursuing a number of different National Priorities... Relevant to the above, it is envisaged that Framework Public Bodies may look to achieve outputs from amongst those that follow below, in performance of a Call-off Contract.

Accordingly, the following are included as KPIs at Framework Level, and it is expected may be developed (including potentially to expand upon) in mini-competitions by Framework Public Bodies.  

Employment and Training

1. Creation/delivery of employment opportunities for young/unemployed/persons from within disadvantaged groups.
2. Creation/delivery of training/upskilling outcomes.’ 

Additional example clauses

'Scotland's priorities are [eradicating child poverty], [growing the economy], [tackling climate change] and [improving public services]. This [Contract/Framework Agreement] supports the following of these  priorities, and Contractors are expected to support the [contracting authority]'s aim to achieve these.' [Insert relevant priority/priorities]. 

‘The Contractor will be expected to provide CVs for all staff involved in the delivery of the contract and provide an overview of planned continuous professional development activity for staff relevant to the [goods/services/works] delivery over the duration of the contract. ‘

‘The Contractor will be required to commit to a minimum number of modern apprenticeships during the delivery of the contract.’

‘The Contractor will be required to commit to a minimum number of work experience placements during the delivery of the contract.’

‘The Supplier will deliver employment, skills and training community benefits that contribute to improved economic inclusion, skills development and employability outcomes for priority groups. These requirements apply for the full duration of the contract.’

‘The Supplier will, within [X] weeks of contract award:

1. Submit a Community Benefits Delivery Plan including but not limited to:
   • planned activities
   • target beneficiaries
   • delivery timetable
   • measurement approach
   • named responsible persons
2. Agree delivery milestones and KPIs with the Authority.’

‘The Supplier will deliver a programme of community benefits covering at least two of the following outcome areas:

1. Employment Opportunities

• Creation of new entry‑level, progression or flexible roles suitable for local jobseekers or underrepresented groups.
• Provision of paid internships, work placements, returnship opportunities or sector‑based work experience.
• Use of inclusive recruitment practices, including engagement with local employability partners.

2. Skills & Training

• Delivery of accredited or non‑accredited training programmes (e.g., digital skills, employability skills, finance, STEM, sector‑specific skills).
• Sponsorship or support for professional qualifications (e.g., Information Technology Infrastructure Library (ITIL), Association of Accounting Technicians (AAT), Chartered Institute of Procurement and Supply (CIPS), PRINCE2 (Projects IN Controlled Environments), cyber certifications).

3. Support for Priority Groups

• Targeted employability or skills interventions for groups including:
  • care‑experienced young people
  • people with disabilities
  • refugees
  • veterans
  • long‑term unemployed
  • women returning to work
• Delivery of job-readiness, confidence-building or career-coaching workshops.

4. Education & Community Engagement

• Delivery of career talks, mentoring or school/college engagement sessions.
• Support for student projects, T‑Level placements, or curriculum-aligned enrichment activities.
• Contributions to community learning spaces (e.g., digital skills classes, IT clinics).

5. Supplier Development

• Providing bid-writing, compliance, digital or business capability-building workshops for SMEs/VCSEs.
• Provision of CPD workshops or skills sessions for local SMEs, VCSE organisations or public‑sector partners.
• Mentoring for small suppliers or entrepreneurs to support local economic development.’

‘Every vacancy on site, including those with sub-contractors, is to be notified to agencies named by the [contracting authority], and candidates identified by these agencies are to have an equal opportunity in the selection process.’ 

‘Where there is a requirement by the supplier or one of its subcontractors to hire additional staff roles for delivery of the contract then these should be advertised through the UK governments’ Find a job service.’

‘The contractor will be required to utilise employment practices that include opportunity for local labour and trainees during the delivery of the contract.’

‘As part of this contract the contractor will be required to participate actively in the economic and social regeneration of the place of delivery for the contract. Contract performance conditions may therefore relate in particular to social and economic considerations.’ 

‘As part of this contract the contractor will be required to create XX number of opportunities for young people. The opportunities must either be employment, apprenticeship or volunteering opportunities.’

Text for Evaluation and Award

'What arrangements will you make to provide mentoring and support for trainees and work placements to ensure maximum retention and achievement of industry accreditations?'

‘The organisation specifically wishes to support the development of skills in [specify industry, for example the building and construction industries and any associated trades]. Please describe your social responsibility initiatives, particularly regarding how you will contribute to this aim including developing trade skills within your existing workforce.’

‘Please explain what action you will take to create and promote training and employment opportunities for young people in the delivery of this contract. This should include how you will ensure that opportunities are inclusive, particularly for disadvantaged or underrepresented groups, including young disabled people and those from rural or low-income backgrounds.’

‘Please describe how you will deliver skills and training opportunities during the lifetime of the contract including relevant policies and strategies. This should detail what evidence will be provided to demonstrate how commitments will be applied in a relevant way to the contract. This may include for example:

• who in your organisation will be responsible for managing the training scheme and overseeing the proposals
• which education and training providers will be involved with delivery of the project
• how you will work with delivery partners identified by the public body to fulfil your proposals, for example the Department for Work and Pensions, Skills Development Scotland, Developing the Young Workforce, Employability in Scotland, No One Left Behind, local employability partnerships, local third sector organisations, etc.
• what types of accredited and non-accredited training are expected to be offered and who are expected to be the main beneficiaries of this training
• what types of apprenticeship i.e. trades, or occupational areas are expected to be offered?
• how will the Target Outputs as set out in the specification be delivered?
• what actions will be taken to guarantee the creation and uptake of opportunities for and by people from priority groups, and what are the expected overall outcomes for these groups?

Answers need not be constrained to or be reflective of any examples given alongside this question.’

‘Please describe how you will deliver Employment, Skills and Training (EST) community benefits throughout the contract term. Your response should include:

• the specific EST outcomes you will deliver and why they are relevant
• the number and type of beneficiaries
• delivery methods, partnerships or pathways to be used
• how activities will be resourced and managed
• how risks will be mitigated
• how outcomes will be monitored, evidenced and reported
• any innovative approaches you will bring to delivering EST outcomes, including new partnerships, digital solutions, or community-led initiatives.’

A Civil Engineering Contract example

‘The Authority is committed to contributing to the social, economic & environmental well-being of the people of Scotland. The Authority aims to maximise sustainable jobs and training gains arising from this Framework, including for disadvantaged groups, or subcontractors to consider how they alleviate skills gaps.

Please confirm how your organisation will seek to support these objectives through the provision and agreement of relevant and proportionate community benefits through an employment skills plan at Work Order stage.

Answers should include (as a minimum) a demonstration of the approach you will take to the following elements:

•       the creation of relevant employment and training opportunities including those that address transferable skills gaps within the supply chain.

•       targeted employment and training for “disadvantaged” persons e.g. unemployed for over 6 months or others, according to the Authority’s priorities;

•       equality and diversity initiatives;

•       identify and make any relevant subcontracting opportunities available to SMEs, third sector organisations and supported businesses; and

•       Build capacity into community organisations’

Terms and Conditions of contact

A Civil Engineering Contract example

Summary

Contractors must provide community benefits. The Contractor must institute, maintain and operate an Employment and Skills Plan (ESP) to support the Client’s Employment and Skills Strategy (CESS). A completed ESP and detailed ESP Method Statement (as described in the Scope) must be provided within twenty one days of the Contract Date. All site-based employment opportunities (including those with subcontractors) must be notified to job centres (including local job centres) at the time they become available. Any non-compliance and remedial actions must be reported to the Client.

1. The Contractor provides community benefits as part of its obligations under this contract. These community benefits include but are not limited to:

• employment opportunities;
• educational and training opportunities;
• community engagement opportunities;
• subcontracting opportunities for supported businesses, third sector businesses and SMEs

As a minimum the Contractor meets the benchmark requirements for the contract set out in the Scope.

2. The Contractor institutes, maintains and operates for the term of the contract an Employment and Skills Plan (ESP) to support the Client’s Employment and Skills Strategy (CESS). The minimum requirements for the ESP are set out in the Scope.

3. The Contractor provides a completed ESP and detailed ESP Method Statement (as described in the Scope) within twenty one days of the Contract Date setting out how it intends to implement the employment and training requirements of the Client and to deliver the ESP.  The minimum requirements for the ESP Method Statement are set out in the Scope.

4. The Contractor complies with the requirements of each ESP and ESP Method Statement in accordance with the CESS.

5. All ESP and related reporting requirements are in accordance with the Scope.

6. The Contractor ensures that all site-based employment opportunities (including those with subcontractors) are notified to job centres (including local job centres) at the time they become available.

7. The Contractor manages and monitors adherence to these requirements and reports any non-compliance and remedial actions to the Client.

Contract and Supplier Management Requirements

It is essential to monitor the community benefit outcomes of the contract to make sure the requirements of the contract are being met. 

‘The Supplier will provide quarterly reporting including:

• progress against KPIs
• evidence of delivery (attendance lists, case studies, workshop materials)
• barriers, mitigations and forward plan
• social impact calculations where applicable

The Authority reserves the right to publish high-level outcomes.’

Based on evaluation of community benefits in procurement, a range of contract and supplier measures are proposed to demonstrate the impact of including them in contracts and frameworks, in line with the procurement annual reporting Annex A data template.

Return to Contract and Supplier Management

Continue to Annex B – Case studies