Adding an Environmental Policy to your RFP:

Many large corporations add their environmental policy statement to all outgoing RFQ or RFP’s when it pertains to contractors or suppliers providing a service both on or off their job-site which in any way may impact the environment. This is a good practice and it puts the contractor or supplier on notice that they are expected to meet or exceed your own company standards when it relates to protecting the environment.

There are many reasons why companies include an environmental policy with their RFP’s.

• they are honestly committed to the environment. Not all large corporations only think dollars or profit. Many are now realizing to be sustainable in business over the long term means protecting the environment and ensuring sound environmental practices are embodied within all regions of their operations.
• they wish to ensure suppliers and contractors are held accountable for their actions and to do so purchasing representatives must include the policy upfront in their RFP if it will imply the conditions of work.
• they have deep pockets and by making such a statement they may mitigate liability by sharing the liability with other parties.

There are many facets to an environmental policy, the above points may be biased towards the legal reasoning as to why you include a policy statement, however some companies do reduce costs by incorporating recycling programs and recycling should be a part of your environmental policy.

RFQPro.com believes all organizations, regardless of size, should include an environmental policy with your RFP, especially when the scope of work means a supplier or contractor will be performing duties on your site or performing duties on your behalf which may get you “invited to the party” (court of law) should someone be charged.

How do you write an environmental policy? RFQPro suggests you look at our options to help you develop a policy which will work for your organization.

RFQ44 – Environmental Policy – Vendor example template for your RFP is sold in both the Mega Pack and our Premium Pack bundles. Click image to preview policy:

As always, we recommend you review all documentation with corporate counsel prior to issue.

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Ever wonder what some of the terms used by Materials Managers and Purchasing Agents mean? Terms like RFQ, FOB, DNR , or a RFP, Vendor, Standing Order Agreement.  Although, these acronyms / terms are used frequently and recognized in the field, it is always a good idea to add them in their full context at least once or define the term on your definitions page to ensure there is no misunderstandings.  Here are a few terms commonly used in the Materials Management or procurement field:

RFQ – Request for Quote or Quotation
RFP – Request for Proposal
ITQ – Invitation to Quote
RFI – Request for Information
EOI – Expression of Interest
IFB – Invitation for Bids
ITT – Invitation to Tender
RFB – Request for Bid
LOI – Letter of Intent
LOU – Letter of Understanding
FOB – Free on Board

UTQ – Unable to Quote
DNR – Do not reorder
UTS – Unable to Supply

Standing Order – A standing order is an open ended purchase order or in essence open ended contract which grants authorization to make regular periodic shipments of a specified product. Usually an annual agreement.

Supplier – A provider of goods and services that typically bills on an invoice and has regular transactions with the Owner or Buyer.

Vendor – Another Name for a Supplier.

Compliance

• Ensuring suppliers perform their obligations and supply goods in accordance with contracts or that services are performed as prescribed by site safety rules and regulation and certain federal, state or provincial laws.

Sample of a compliance clause in a supply agreement:

• The goods called for in this agreement shall comply with all applicable codes, standards and/or both regulations of the governing inspection authorities at the place of use.  The Vendor shall acquire and keep in force all required permits and certificates of approval.   The Vendor shall comply with all provisions of law governing its performance under this agreement including, without limitation, Safety and Reclamation Codes,  all dangerous goods legislation and all workplace hazardous materials legislation and regulations governing the design, safety, handling, packaging, labeling, transport and the use of goods.

Due Diligence

• Due diligence in a broad sense refers to the level of judgement, care, prudence, determination, and activity that a person would reasonably be expected to do under particular circumstances.

Force Majeure (sample clause)

• No party hereto shall be liable for any delays in the performance of their obligation hereunder (excluding financial obligations) if any such delay or failure is due to acts of God, war, riot, sabotage, strikes, lockouts, or differences with workers, accidents, lack of water, power, gas, materials, any and all government laws or regulations, or any disabling cause beyond the reasonable control, and without the negligence of, the party invoking this clause.

Notice to the other party of any event of force majeure stating the date of the commencement thereof shall be promptly given and shall immediately be followed by a notice setting for the particulars of the event of force majeure and the expected delay.  The party so affected shall take all reasonable steps to remove the force majeure conditions and to resume, with the least possible delay, compliance with its obligations under this agreement, and shall promptly advise the other party of the date when the force majeure is ended.

Assignment (sample clause)

• The Vendor may not assign or sublet any of its rights or obligations under the Agreement without the prior written consent of the Owner,  which consent may be arbitrarily withheld.

Interested in learning more or in acquiring an array of templates which cover the above terms? If you are planning to issue an RFP or RFQ, please visit our Special Offers page – RFQPro.com can help.

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We encourage you to include the applicable Terms and Conditions (TC’s) with your RFQ package at time of issue so your Vendors can peruse them during the tender and understand what they will have to comply with if they are awarded the contract. In any event, after you have the bid results from your RFQ or RFP and have issued an award letter to the successful bidder, some Corporations will then provide a purchase order. With the purchase order, they usually include the TC’s and expect the Supplier or Vendor to follow them. The TC’s often include clauses relating to Insurance, Safety, Arbitration, Notices, Regulations, Payment and more.

See RFQ20 below where you can download our free set of terms and conditions. These can be used for a Supplier which has been awarded a contract to supply and erect purchased equipment on your property or you can massage them to relate to many other day to day applications.

Check back as we will be posting more generic versions soon, see RFQ42 post.

Download Terms and Conditions in PDF >>> RFQ20 – Terms and Conditions

Interested in an edit friendly word version please visit our Special Offers Page.

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