Procurement Services experts

Supplier contract negotiations can be daunting & time consuming, which is why most organisations use the suppliers contract template & accept the terms while making little or no changes.

A contract is more than a legal document, its an opportunity to formalise the performance expectations that you have cultivated throughout the tender/negotiation process. 

Including these expectations become key to keeping the supplier on the hook throughout the contract period, as they define how prices are reviewed, your performance expectations, how performance is measured & mechanisms for reviewing the contract, to name just a few.

These terms appear immaterial at the start of the contract, however become significant when it comes time to review prices or addresses performance issues. 

Our keys to developing a performance based supply contracts are-

* use your own contract template where practical.

* include your performance expectations into the tender process so there is a clear understanding by suppliers of your requirements.

* Define how performance will be measured & reported.

* Be as detailed as possible regarding commercial terms, specifically price stability & the price review mechanism.