A Sector First: LGP Research Reveals the Partnership Premium

In a global first for local government, Local Government Procurement (LGP) and World Commerce & Contracting (WorldCC) have brought together the voices of Australian councils and suppliers to reveal what strengthens—and limits—the value created through their relationships.

The Partnership Premium: Stronger Australian Council-Supplier Relationships and Better Outcomes shows that the next gains in value for money, innovation and community outcomes will not come from more process, but from better partnerships.

What the research reveals

The foundations are encouraging. Contract mobilisation is generally effective, communication during delivery is often sound, and most disagreements are resolved through dialogue. Yet significant value remains unrealised because many council–supplier relationships are still transactional rather than strategic.

• Only 31% of suppliers consistently or often understand a council’s strategic objectives before bidding.
• 40% say meaningful market engagement rarely or never occurs.
• More than half have rarely or never seen innovative ideas implemented within council contracts.

These findings raise important questions. Are suppliers engaged early enough to help shape better solutions? Is there a clear pathway for evaluating new ideas? Do contracts encourage collaboration—or simply compliance?

From good relationships to greater value

Earlier dialogue is one of the clearest opportunities. Councils can improve outcomes by sharing the objectives of a procurement, not only its specifications. Suppliers can contribute by seeking clarification and understanding the strategic intent behind each opportunity. Together, these actions reduce assumptions, improve market understanding and support better commercial design.

Innovation is another major opportunity. Suppliers identified digital solutions, AI, smarter reporting, alternative delivery models and sustainability initiatives that could deliver better outcomes. The constraint is not a shortage of ideas, but barriers such as risk aversion, rigid specifications, complex governance and limited funding. Innovation becomes more achievable when councils and suppliers can evaluate ideas together, share risk appropriately and reward collaborative behaviour.

Download the research

The research examines the experiences of councils and suppliers, identifies where value is being lost, and highlights practical opportunities to build more strategic commercial relationships. Download the research paper to explore the findings and consider how they apply to your organisation.

Watch the sector discussion

The findings were explored in an LGP webinar featuring Sally Guyer, CEO of WorldCC; Bronwyn Challis, LGP; and industry leaders Scott Alden, Vanessa Di Pietro and Dariel Kolarik. The panel discussed how councils and suppliers can move from transactional contracting to strategic partnerships that enable innovation, resilience and community value. 

Watch From Transactional to Strategic: Building Stronger Council-Supplier Relationships to hear the panel’s insights and practical perspectives.

Continue the conversation at the LGP Annual Conference

The research starts the conversation. At the 2026 LGP Annual Conference in October, we will take it further—examining how councils and suppliers can turn these findings into better commercial practices and stronger community outcomes.

Australian councils and suppliers already have strong foundations. The next step is a deliberate shift towards earlier dialogue, clearer relationship intent, better commercial design and stronger pathways for innovation. When councils and suppliers work as partners rather than participants in a transaction, the benefits extend beyond individual contracts to better services, stronger infrastructure and improved outcomes for communities. 

View the conference agenda and register to join the next stage of this important sector conversation.

WorldCC Individual Membership - AU$49

LGP is pleased to offer local government employees across Australia access to a 12-month WorldCC Individual Membership for just AU$49.

Membership provides access to a range of practical resources, tools and learning opportunities, including:

• Practical guides, checklists and templates covering contracting principles and specialist areas
• Contracting tools, including the Contract Design Pattern Library and Contracting Health Check
• Expert-led webinars and local WorldCC Connect events
• A global network of more than 90,000 commercial and contract management professionals
• Thousands of articles, reports and podcasts, plus the Contracting Excellence Journal
• Certification pathways in Commercial & Contract Management
• Short online learning programs and workshops, available at an additional cost

For local government professionals looking to strengthen their commercial and contract management capability, this provides a valuable opportunity to access WorldCC's global expertise at a significantly reduced membership rate.

Interested? Get in touch with Yang at yxu@worldcc.com to take up the offer.

Written by Bronwyn Challis, Director, Customer Engagement, LGP