Navigating supplier performance

How organisations address underperformance and contractual disputes amid growing economic challenges and increased scrutiny is critical. Poor performance can disrupt services, inflate costs, and expose your organisation to legal and commercial risk. Whether you’re supplying or procuring within the public and private sector, proactive contract management is crucial.

Date published

18 November 2025

This hub is designed to equip you with the tools to anticipate and manage risk, resolve complex contractual issues with confidence, and align strategy with commercial objectives. From preserving key relationships and renegotiating terms to preparing for dispute escalation, we’ll help you stay ahead.

Explore our latest insights and videos on effective supplier performance management, with guidance to help you maintain control throughout the contract lifecycle - mitigating risk, preserving value, and unlocking future opportunity.

Contract remedies for underperformance

When supplier performance falls short, organisations must act decisively but strategically. Do you terminate? Do you renegotiate the contract? Do you negotiate a planned exit or enforce the dispute resolution mechanisms in the contract?

We can help you navigate the full spectrum of options available in response to underperformance. From contract review and contract management through to dispute resolution and exit planning, we’ll ensure you remain commercially focused.

Managing underperforming suppliers under the Procurement Act 2023

The Procurement Act 2023 has reshaped how organisations manage supplier performance, introducing new rules that demand greater transparency, accountability, and strategic oversight. As economic pressures mount and public scrutiny intensifies, underperformance is no longer hidden - it’s a reputational and operational risk. The Procurement Act empowers contracting authorities to set clear performance benchmarks, publish assessments, and exclude suppliers who fail to deliver. Both public and private sector organisations need to remain alive to the changes.

We work with clients across central and local government, blue light and the wider public sector, advising on strategic, procedural, and challenge-related issues. Find out more about our holistic approach on our Procuring 360 hub.

Preserving commercial relationships

Disputes are an inevitable part of doing business - but they need not signal the end of a commercial relationship. Long-term supplier and client relationships are often built on trust, shared goals and mutual investment. Preserving these relationships before things escalate allows businesses to maintain continuity, avoid reputational damage, and reduce the cost and disruption of litigation.

We work closely with clients to assess the root causes of conflict, explore collaborative solutions, and deploy tailored strategies that balance legal rigour with commercial pragmatism.

CDR in 10 video series

In these special editions of our CDR in 10 video series, our experts discuss how to navigate supplier underperformance, including the changes that the Procurement Act 2023 brings and how commercial relationships can be preserved.

Read our latest insights

INSIGHTS 18 NOVEMBER 2025

Beyond the clause - Five considerations for terminating a contract

The decision to terminate a contract is rarely straightforward and can have far-reaching legal, commercial and operational consequences. In this article, we outline five steps to consider before terminating a contract.

Our approach to managing supplier underperformance

Our extensive experience means we know that disputes often stem from misaligned expectations, unclear terms or breakdowns in commercial relationships. Leveraging deep sector knowledge and a proactive approach, we help clients assess, address and resolve supplier issues - whether the goal is to preserve a key relationship, reset a project, or enforce contractual rights.

TLT's specialist CDR team offer:

Strategic partnership – collaborating closely with senior leadership, in-house counsel and delivery teams
Commercial focus – advice tailored to your business priorities
Escalation management & resolution – supporting you from the first signs of underperformance through to formal disputes
Settlement & ADR expertise – helping you resolve issues efficiently and effectively