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Yes. Legal/Contractual Terms and conditions should be part of RFQ. We need to get acceptance in writing before placing order.
It is important to safeguard the business against potential risk. You should always specify the outcomes required and ensure there are no ambiguities. Service level agreement and contracts, in addition to MOU are all instruments for this. Always play it safe and remember that there are no friends when dealing business. All have the same purpose in mind, and that is to make money.
The RFQ also falls under this banner. Although not as binding, effort needs to be made in the draft to ensure that the service or provisions asked for are included I the supplier tender submission. The responses received should be vetted against the RFQ and weighted assessments made to select the best supplier or contractors for the task. There is a great 'app' that you can use for making impartial and weighted options, it is called 'FYI Decision'. Great to introduce impartiality and remove 'politically' motivated bias.
Thanks for invitation
The entire procurement process shall satisfy the following criteria.
The legal/contractual terms and detailed RFQ shall satisfy the transparency only. So, this is not enough for cost effective procurement.
The procurement process also needs integrity of the procurement personnel, fairness in bid evaluation, selection of most cost effective item ( best value for money) ensuring right quantity, quality and delivery at right time (economy and effectiveness).
In RFQ detail information is require such as specification, standards, quantity, payment terms, delivery lead time and location. In contract, we can bind the vendor with more terms and condition which will safe guard the company.
There are many good answers given ... no need to add an answer
I think in RFQ main agreements will be on below terms :-
>> Cost
>> Production lead time
>> Delivery term
>> Payment term
>> Quotation validity period
>> Penalty in case of any delay
We always include the contract as part of RFQ documentation, and most times we also require vendors to confirm in writing that they accept the contract terms and conditions applicable / attached should they be chosen supplier. This shortens the process by 50% - it has been my experience that the chosen vendor tries to "renegotiate" as much as possible at the contracting stage, when they know they are the chosen supplier and especially when they are aware that time is critical variable.
Procurement and purchasing both operations are very critical and needs deliberations. Word "operation" I have used as this is the main cause of raising or lowering the company reputation. Unfortunately this aspect is neglected in making RFQ. A very casual approach is adopted and normally old RFQ is copied for other where as each item or commodity has its own supply and provision procedure. We must include every aspect in RFQ so that it may result in ultimate economy and benefit to the company.
