Contract Management
Off-Contract Spend
Measures spend that bypasses established contracts and panels.
Why Off-Contract Spend Leaks Value
Spend that bypasses established contracts and transversal panels forgoes negotiated pricing, weakens compliance and often skips proper competition. High off-contract or maverick spend signals weak SCM discipline that the AGSA and oversight bodies probe. AuditPro Core measures spend flowing outside established contracts so leakage is quantified and channelled back onto compliant arrangements.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
On-Contract Spend
74%
▲ 4%
Off-Contract Spend
R 530m
26% of total
Maverick Transactions
8,140
▲ 6%
Estimated Leakage
R 34m
lost discount
On vs Off-Contract Spend by Category (R'm)
Largest Off-Contract Buyers
| Department | Category | Transactions | Value (R'000) |
|---|---|---|---|
| Dept B | ICT | 1240 | 41200 |
| Dept D | Security | 980 | 32400 |
| Dept A | Logistics | 760 | 21900 |
| Dept C | Construction | 540 | 18300 |
| Dept E | Other | 420 | 11800 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
On-Contract vs Off-Contract
On-contract spend uses an existing agreement with negotiated terms and a competitive basis already established. Off-contract spend buys the same goods outside that arrangement, usually at worse prices and weaker compliance.
Why Maverick Spend Arises
It typically stems from unawareness of available contracts, urgency or supplier preference. Each cause points to a different fix, from communication to catalogue enforcement.
The Cost of Leakage
Beyond lost negotiated discounts, off-contract buying fragments demand and undermines the very contracts the institution invested in establishing. Coverage is therefore both a savings and a compliance metric.
How AuditPro Core Bridges the Gap
- Coverage measurement: spend is classified as on- or off-contract to quantify the leakage rate.
- Category drill-down: off-contract spend is analysed by category to target where contracts exist but are bypassed.
- Exception workflow: avoidable off-contract purchases route for review and redirection.
- Audit-ready export: coverage rates export to support SCM-discipline reporting to oversight.
Key Takeaways
- Off-contract spend forgoes negotiated pricing and weakens compliance.
- Maverick buying usually traces to awareness, urgency or preference.
- Leakage fragments demand and undermines existing contracts.
- Quantify coverage to redirect spend onto compliant arrangements.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.