Council-Supplier Relationship Research

In 2026, Local Government Procurement initiated research into council–supplier relationships, partnering with World Commerce & Contracting (WCC) to examine how councils and suppliers work together and where stronger commercial relationships could deliver better outcomes. 

‘The Partnership Premium: Stronger Australian Council-Supplier Relationships and Better Outcomes’ brings together 153 recorded council responses and 101 recorded supplier responses, providing perspectives from both sides of the procurement relationship. Supplier respondents represented a broad cross-section of industries, with strong representation from construction and infrastructure, professional services, and IT, digital and data.​

The research found that council–supplier relationships are generally constructive, but there is significant opportunity to move from transactional relationships towards more strategic partnerships. Market and supplier understanding emerged as the most frequently identified council capability gap, cited by 59% of suppliers. 

The research also highlighted opportunities for earlier market engagement and more open dialogue, with only 32% of suppliers agreeing they could raise concerns or suggest alternatives during pre-procurement discussions without fear of disadvantage. The research also identified innovation as a significant missed opportunity, reinforcing the need for clearer pathways to assess and adopt supplier ideas.