Because purchasing professionals must ensure that contracts protect the interests of their organizations, the ability to understand contracts is a key skill. In particular, buyers need to answer, in broad terms, the following questions:
- How appropriate is the contract for the product/service it covers?
- Does the contract address all aspects of business risk?
- Does the contract represent value for money?
- Does the contract have best practice clauses around value delivery and value creation?
- Am I getting what’s been promised and what i have contracted for?
- What level of business support does the contract require to ensure compliance
- Does the contract comply with all purchasing policies & procedures relating to contract governance?
To answer these questions ADR will undertake a full contract review using a modular approach that considers the following aspects of a contract; Criticality to Business, Business Risk, Value for Money, Market Conditions, Compliance, Contract Governance and Appropriateness.
ADR works with the client to agree the weighting to be applied to each module. In addition ADR will provide for each of these areas a set of criteria that each contract can be assessed against and a module score awarded. A detailed commentary to support each module finding would be provided.
The output will be a professional purchasing assessment of each contract, that clearly identifies any concerns and the corresponding corrective actions that should be taken to mitigate those concerns and, where possible, deliver more cost and value benefits to your organization.