Use of Consultants

Background

Consultancy is big business and one of the fastest growing sectors within the service economy. Unlike other professional services provided by accountants and lawyers, for example, it is not bound by professional regulation.

Between 2011 and 2015 the States recorded expenditure on consultants averaging £3.9 million per annum, representing approximately 0.5% of Consolidated Fund expenditure

Scope

This report evaluates the effectiveness of the States’ overall arrangements for the use of consultants against best practice including:

• careful consideration of why the consultant is needed and the right consultant to engage
• skilful management of the project and supplier through to delivery; and
• effective evaluation of consultants’ findings, implementation of agreed recommendations and sharing of experiences.

Conclusions

The States recognise that buying consultancy services is different from buying other goods and services. Separate procedures have been put in place to accommodate these differences and there are some good examples of how consultants have been used effectively.

However, there are some key weaknesses, both in the arrangements as documented and as operated in practice. These weaknesses mean that there is an increased risk that the States do not secure value for money from expenditure on consultants.