How do your contract skills compare
with those of world-class purchasing
Use this 15-point
Competency Checklist to find out!
PurchTips - Edition # 4
By Charles Dominick
Purchaser's Contract Competency Checklist
- I use formal guidelines in determining when it is prudent to use a contract instead of a P.O.
- I know how to determine the best form of agreement (general terms agreement, letter of intent, etc.) for a particular situation
- I know how to structure a contract including the use of exhibits for efficiency
- I know at least 6 different types of remedies that can be used when a contracted supplier fails to perform
- I know the advantages and disadvantages of using at least 4 ways of resolving disputes with contracted suppliers
- I know how to use indemnity provisions to prevent my company from being sued
- I know how to write language that can limit the financial risk to which my company is exposed
- I know how to determine if a supplier's Force Majeure provision gives an excessive amount of protection to the supplier
- I know how to write language that protects my company from undue price increases
- I know how to write language to guarantee that my company gets the best pricing offered by a supplier
- I know how to write or modify specifications to make them most suitable for inclusion in contracts
- I know how to write warranties that will ensure that my company receives a fully guaranteed product or service
- I know how to refer to a document such that it becomes a legally enforceable part of a contract
- I know how to modify contracts after they have been signed by using addenda or amendments
- I know how the Uniform Commercial Code can be superseded by the terms of a contract
Spotlight On Professional Development Opportunities
Are you putting your organization at significant risk by not having a good contract in place? Without contract writing skills, you may be contributing to a disaster waiting to happen. Next Level Purchasing's online class "Supply Management Contract Writing" will help you reduce your procurement risks. This class goes beyond explaining contract law. Through plain English examples and exercises, you will learn how to negotiate and write effective contracts and terms and conditions.
You will learn how to protect your organization from the effects of suppliers' failure to perform, plus...
- How to choose the most appropriate agreement form
- How to develop language for dispute resolution
- How to write key commercial provisions
- How to write key technical provisions
- How to write key legal provisions, and much more
For more information on this class and other online classes for purchasing professionals, visit:
Is poor supplier performance driving you crazy? You won't have to work so hard if you apply certain proven techniques for evaluating and improving supplier performance. If you have wanted to implement a supplier ratings program but had difficulty getting started, Next Level Purchasing's online mini-course "Managing Supplier Performance" (MSP) is the perfect class for you. And, oh yeah, it's FREE!!!