5 Important Criteria in a Procurement Contract
A document giving a full particulars of the legally-binding solidarity between a buyer party and supplier party is generally called a procurement contract. Specifically, the supplier is promising to sell products and/or services with concrete technical specifications and to accomplish the conditions and terms in the mutual agreement. Besides, the buyer in return is willing to acknowledge the goods or services and the goods and pay for liability created.
There are 5 essential criteria in a Procurement Contract, which is normally frame a
- Monitoring and controlling performance.
- Receipt, inspection and acceptance.
- Change management.
- Contract termination.
- Alternative dispute resolution.
- Financial management and payment.
- Performance security.
Procurement contract aims to ensure sorts of the rights and duties of two or more parties, which are provided to certify that it meets the standardized quantity of input, at the right time, while minimizing cost. Therefore, opting for a good procurement provider weighs a matter in organizations.
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