Procurement Contracts

I hope that you've enjoyed the article, "Contract Templates: False Sense Of Security?"

The issue of enforceability of procurement contracts is tricky. There are various things that can make a procurement contract unexpectedly unenforceable. Therefore, knowing exactly how to write a contract is critical.

One "war story" that I love to share is from my days back in the airline industry. This was in the days when airlines were financially healthy and had significant leverage over their suppliers. Now, I imagine some airlines have suppliers who will refuse their business unless its done on a C.O.D. basis.

Anyway, for this large service procurement contract, my VP of Procurement demanded that one of the terms be a $15,000 per unit per day liquidated damages clause. This was unheard of!

Competing suppliers' jaws collectively dropped when they saw that clause in our RFP. And once we got to the negotiating stage, the suppliers fought it vehemently. Ultimately, the successful bidder did agree to it!

But I wonder...if the liquidated damages ever had to be collected and the supplier refused to pay, would the courts find the clause enforceable? Or would they deem it unconscionable?

I am thankful that I never had to find out!

Got a war story too? Click the comments link below and share it!

Respectfully,
Charles Dominick, C.P.M., SPSM
President
Next Level Purchasing, Inc.
Give Your Purchasing Career A Boost By
Earning Your SPSM Certification Online At
http://www.NextLevelPurchasing.com

Better Than A Supply Chain Book?

I realize that there are some poor online classes out there. Ones without multimedia or hands-on learning or instructor interaction.

The good news is that Next Level Purchasing's online purchasing classes are not mundane like that. The bad news is that those crappy classes make people assume that all online classes are that bad.

I had an interesting conversation with a potential customer the other day who wasn't sure that there was an advantage to our purchasing training compared to reading a supply chain book. So I laid out seven points that clearly make our classes much more valuable than reading a book. Those points are:

1. You can ask an unlimited number of questions over a period of 60 days with a guaranteed 24 hour response time. Try getting that type of response from a supply chain book author.

2. You engage in interactive, Web-based exercises that make learning more "hands-on."

3. Each class has 8 quizzes to test your knowledge and identify areas for you to review for greater understanding.

4. There are audio clips that you can listen to when you need a break from reading.

5. All material is online, meaning that you get updates in real-time and can be assured of having the latest information immediately available to you.

6. You get a Certificate of Completion mailed to you.

7. You earn Continuing Education Hours which you can apply towards your purchasing certification requirements.

So if you were thinking that a supply chain book will help you as much as our classes, hopefully, this post will make the advantages clearer to you.

Respectfully,
Charles Dominick, C.P.M., SPSM
President
Next Level Purchasing, Inc.
Give Your Purchasing Career A Boost By
Earning Your SPSM Certification Online At
http://www.NextLevelPurchasing.com

Negotiation Course Comments

It is one of the most flattering things to have a student write heartfelt, positive comments about one of our courses. Here's what one of our recent students said about our negotiation course, "Powerful Negotiation For Successful Buying:"

"What I really like about your courses is that you concentrate on the
professional side of purchasing and you go directly to the point very
clearly. This saves time for people who don't have time to read a book
about purchasing."

Samar Al Mansouri
Procurement/Contracts Supervisor
Abu Dhabi, United Arab Emirates

Respectfully,
Charles Dominick, C.P.M., SPSM
President
Next Level Purchasing, Inc.
Give Your Purchasing Career A Boost By
Earning Your SPSM Certification Online At
http://www.NextLevelPurchasing.com