How to write Vendor Contracts

Vendor Contracts:

With over 25 plus years in the purchasing profession we have seen Vendor Contracts take on many forms. In the early days some were pretty scary and we would be challenged to even call them a contract. They were more like a glorified hand written fax! Our profession has evolved and writing a vendor contract can mean a one pager or it can be  a 300 plus page vendor agreement. Here is to hoping you get more 1 page ones.

With the litigious environment companies are faced with today, it doesn’t matter whom you’re doing business with, it is prudent to draw up a vendor contract to clarify the duties or scope of work which will be carried out by each party involved. Spend the extra effort and make it clear.

How do you make it clear? Have a second party proof read it for you to make sure it flows and makes sense to a first time reader. To ensure there are no misunderstandings, include an example showing any cost breakdowns and final results. This works great if you are purchasing a commodity where the price is based on several pricing mechanism. An example, market cost or base price of item + bridging or freight + packaging + taxes = $Price Paid by Company for next three months. In this instance, there can be no misunderstandings by any party which will examine the agreement at any future date.

The main elements of a vendor contract are the cost, services and products to be provided, what will happen if something doesn’t go as planned (contingencies), and the applicable dates for final delivery. The objective is to be thorough, eliminate unknowns, liabilities and ensure every scenario is covered in your contract. You do not want to get burned nor do you want a vendor to suffer punitively in the process. A company which is fair to its vendors gets a solid reputation and everyone wants to deal with owners which treat suppliers fairly. If you properly solicit quotations for your requirements this process will ensure you never pay more than what the present market allows.

Okay, so a main point in developing a quality vendor contract is to spend a bulk of your efforts on the scope or explaining the responsibilities of the vendor to ensure there are no misunderstandings. Include examples, proof read document. What else or what other areas need to be addressed? Here are a few:

Step 1

Identify the two parties that are associated with the contract. The “Vendor” aka “Supplier”

Sample Contract RFQ51

Free Contract Templates

Free Contract Templates

Not many websites offer free contract templates, does.  If you subscribe, included in our welcome pack is RFQ4 – Service Contract template for consulting services. This contract template can be used for labor services arrangements and more.

If you are in need of other types of contracts like supply contracts, can help.

RFQ51 – Lubricants Contract is a pricing / supply agreement template which can be tweaked and used for most  of your consumables contracts or for commodity based needs. This digital download delivers in both Microsoft Word and PDF format.

Download and preview a portion of this 9 page contract here >>> Sample Contract RFQ51

RFQ51 – RFQ54 contract templates are now available in the Premium Template and Contract Packs and must be purchased from the RFQ Contract Pack or Premium Pack link in the left margin or on the Special Offers page. 

Hosting Agreement – Sample Template

Hosting Agreement Template:

If you are searching for a sample hosting agreement template or looking at putting together a hosting contract, this form should get you off and running.

Here is a portion or sample of the agreement (pages 1-4 of 8)>>>RFQ3 – Sample Hosting Agreement Partial

To download our complete package and receive this full 8 page contract in an editable format (Microsoft Word) click here