A buyer's 11-point contract review checklist

| 0 Comments

 

ContractChecklist.jpgEvery contract seems to provide adequate protection when it is negotiated and signed. However, during contract performance, disputes often arise between buying organisations and their suppliers.


The following checklist, from Next Level Purchasing, aims to help you review your contracts before signature so that you avoid some of the most common procurement contract pitfalls.


1.  All prices must include a unit of measure.


2.  Express the contract pricing as fixed or specify the circumstances and methods for pricing changes.


3.  Make sure that the Force Majeure clause does not contain any unreasonable excuses for the supplier’s failure to perform.


4.  Ensure that the warranty clause specifies applicable remedies for failure and includes the time frame in which each remedy is required.


5.  Be sure that the time that the warranty begins is adequately specified, as there are many options.


6.  Ensure that the limit of liability provision applies to your organisation, not just the supplier.


7.  Make sure that the confidentiality provision protects your organisation’s intellectual property, not just the supplier’s.


8.  Make sure that the indemnity provision protects your organisation, not just the supplier.


9.  If the time frame for payment and/or delivery is specified in days, ensure that it is clear when the counting of days begins as there are many options.


10.  Make sure that how the word “days” is to be used is adequately defined as there are many options.


11.  Make sure that you follow your organisation’s policies for having contracts reviewed by an attorney.
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Trade Compliance Senior Analyst

  • <500 000 >500 000 Analyst Buyer Gauteng Permanent
Trade Compliance Senior AnalystLocation – Rosslyn, South AfricaThe ...More

Logistics Controller

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Based in Stellenbosch, South Africa’s leading fruit exporter ...More

SUSTAINABILTY MANAGER - FARMING

  • >500 000 Gauteng Permanent Procurement Management Strategic Sourcing
(Total Cost to Company R900k – R1.2mil) includes ...More

Category Manager Logistics

  • >500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
(Total Cost to Company R900k – R1mil) includes ...More

Group Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management
Location: Johannesburg .Cost to Company R1.2mil – R1.4mil excluding ...More

Procurement Analyst

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R200K – R400K)We are ...More

Industrial Engineers

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Strategic Sourcing
(Total Cost to Company R400K – R550K)We are ...More

Category Manager Packaging

  • >500 000 Gauteng Permanent
Location: Johannesburg Cost to Company R1mil – R1.4mil ...More

Category Manager Packaging

  • >500 000 Gauteng Permanent
Location: Johannesburg Cost to Company R1mil – R1.4mil ...More

Category Manager Packaging

  • >500 000 Gauteng Permanent
Location: Johannesburg Cost to Company R1mil – R1.4mil ...More

Category Manager Packaging

  • >500 000 Gauteng Permanent
Role: The Category Manager will be responsible for ...More
Location: Johannesburg Description: To develop and manage relationships ...More
Location: Johannesburg Description: To develop and manage relationships ...More

Global Commodity Manager: Mining Commodities

  • Commodities Gauteng Permanent
Location: Johannesburg Description: Ensuring continuity of supply ...More

Global Commodity Manager: Mining Equipment

  • Commodities Gauteng Permanent
Location: JohannesburgDescription: The commodity manager is accountable for ...More

Mining Project Manager

  • Gauteng Permanent Projects / Category Management
Location: Johannesburg.Description : Responsible for successful implementation and ...More

Mining Project Manager

  • Gauteng Permanent Projects / Category Management
Examples of high impact initiatives are Equipment Automation, ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R 650 000 –R 800 000 CTC pa GautengA ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Management
R 600 000 – R 700 000 CTC ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Officer / Specialist
R 500 000 – R 550 000 CTC ...More