A procurement contract is appropriate when the main objective of the operation consists in the acquisition of goods or services for the direct benefit or use of the federal government or any buyer. A purchase agreement is a legally binding joint relationship when the seller is required to provide supplies or services that the buyer pays. By contrast, a support agreement can be a cooperative agreement or grant. They are a great help to associations and it may not establish its own electronic trading services without any delay.
The reason of a contract management is to enlarge the financial and operational performance of the contract and to minimize the risk. It continues throughout the life of the contract and allows both parties to react to changing needs that could not be foreseen at the time of letting the contract. Good contract management also builds and manages a relationship with the provider so that problems can be solved fairly and began a process of continuous improvement. All this means that the best way to manage a contract is to have someone who is intelligent client role.
The main reason of having intelligent client function is to avert problems in the execution of the contract and procurement as a result of confusion between the customer and the service provider as to what were expected or unrealistic expectations.
To accomplish this, the one with the intelligent client role requires both in-depth knowledge of the customer's organization and its needs, as well as an understanding of what the service provider is and is not capable of doing.
If no one is assigned the role of intelligent client function, a number of problems can occur. These comprises of:
- · The contract is managed by the supplier with the result that the results are biased in favor of the supplier.
- · Misunderstandings and problems with the proliferation of many inappropriately escalated to senior management.
- · A failure by both parties to understand their roles in the delivery of the contract with the result that the service is less than expected.
- · The processes that deliver the new contract does not integrate with existing processes resulting in either a failure to deliver or return to work, having to perform.
- · Missed opportunities to improve the performance of the contract or increase profitability.
- · The slow, morale and ultimately reduces a contract unviable.
With a smart client role, you will be able to manage the contract in the best way possible and achieve a number of results. These comprises of:
- · A common understanding between the customer and the supplier of what can be achieved to meet customer expectations.
- · The ability to influence the factors that maintain and improve working relationships to deliver maximum benefit for both parties.
- · The ability to manage change and its impact on customer-supplier relationships.
- · The flexibility needed to meet the changing expectations of service as demand levels.
- · The ability to be proactive and anticipate and react to changes.
- · Ensuring that standards and procedures are met consistently.
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The author is an experienced writer, he is writing this time for global.tendernews.com, it is a leading online tender service website. At present, he is writing on different topics like, OJEU tendering, OJEU procurement, tender for contracts, e tender, open bids, proposal for RFP, tender electronic daily, etc.