Off-contract spend is spend that arises outside existing contracts although a suitable contract exists for the requirement.
Difference from maverick spend. Maverick spend means buying outside the process. Off-contract spend means the agreed terms are not used. The two overlap but are not identical: an order can be placed in the regular system and still end up with a supplier or at prices outside the contract. Conversely, maverick spend also occurs where no contract exists at all.
Causes. The contract is unknown or hard to find, terms are outdated or do not fit, the contract has expired, a provider is preferred personally, time pressure applies.
Consequences. Negotiated prices and terms do not take effect, volume is not bundled, agreed minimum volumes may be missed.
Control. Make contracts findable, design master agreements with call-off rights, reconcile spend against contracts regularly. The central metric is the share of spend that runs under a contract.