Formal-relational contracting

For decades, public services have often been commissioned through traditional, one-to-one contracts shaped by market principles. While these approaches can provide clarity and control, they frequently struggle in complex environments where needs evolve, risks emerge over time, and multiple organisations must work together. The result is often fragmented services and limited ability to adapt.

Our work focuses on alternative commissioning and contracting approaches that support collaboration across networks of providers. In particular, we are developing and testing formal-relational contracting: an approach that combines clear contractual structures with governance arrangements, shared principles, and ways of working that encourage trust, learning, and joint problem-solving, without abandoning public accountability.

This research is led by Dr Eleanor Carter through a UK Research and Innovation (UKRI) Future Leaders Fellowship. Her work examines whether the current focus on commissioning individual services is fit for purpose, and how alternative governance and contracting approaches might better support collaboration and collective accountability across networks of providers.

Working with Dr Felix-Anselm van Lier and Michael Gibson, and in collaboration with partners such as Public Digital, the team is building practical frameworks, tools, and evidence to help commissioners and providers adopt more adaptive, test-and-learn approaches to delivering public services.

Using a mixed-methods approach, the research aims to show when and how more relational contracting can support better decision-making, more responsible innovation, and more joined-up public services that deliver greater public value.