Global Contract Logistics

Appendix K

Helpful tips for the intelligent client and the procurement professional

1. Understand the end user’s need before beginning the procurement process.

2. Determine how to measure need satisfaction.

3. Identify all risks, allocate who can manage them best and then devise the contract.

4. Focus more time on validating estimated direct costs and avoid over-concentration of profit and overhead.

5. Avoid using liquidated damages provisions to create false security.

6. Don’t abdicate your role as customer to form a cuddly alliance.

7. The acquisition process must begin far upstream long before contract writing.

8. Resist the temptation to gold-plate a specification; stick with just the need.

9. Let end users, bill payers and industry provide input to specifications ...