Flashcards
1.1 Flash Cards
Cards in this deck (18)
- 1What should be included in a RFQ?1, Buyer contact details
2, Reference # & Reply by Date
3, Specification & Qty to quote on
4, Delivery time & Place
5, Buyers T & C's
6, Financial Terms - 2Name the 3 Types of TenderingOpen Tendering - widely advertised
Selective Tendering - restricted to approved suppliers
Restricted Open Tendering - 3What is the purpose of a specification?Define Requirement
Communicate the requirement
Minimise Risk & Cost
Provide a means of evaluation - Right Quality - 4What are the 2 types of specification?Performance
Conformance - 5What are the advantages to Performance specification?Gives the seller freedom to offer expertise
Quicker to draft
Don't depend on Buyer knowledge
Share of risk is borne by seller
Potential supply base is wider - 6What are the advantages of Performance specification?TO ADD TEXT LATER
- 7What does KPI meanKey Performance indicator, a way of measuring supplier or staff performance against calculatable targets.
- 8What do KPI's help with?Benchmarking
Setting performance criteria
Tracking performance trends - Improvement/Deterioration
Providing feedback for improvement - 9What are express terms?Express terms for part of a contract and clearly stated: Delivery dates, Force Majeure,
- 10What are Implied terms?Terms that are "presumed" exist by virtue of law: Caveat Emptor (buyer beware), Sale of goods act.
- 11Explain Condition and WarrantyA condition is a vital term, breach of contract = contract termination.
A warranty is less vital, breach = damages may be sought. - 12Model form contract Advantages & DisadvantagesEasily accessible
Reduces cost and set up time
Universally accepted
Designed to be fair to both parties
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Terms not as powerful as contract
special clauses not included
Legal advice still required - 13What is a pricing schedule?The pricing details written into the contract, i.e Price increases are not accepted unless agreed in writing before delivery.
- 14What are the 4 basic questions at the heart of contract law?Is there a contract in existence?
Is it an agreement the law recognises?
When do obligations come to an end?
What remedies are available for injured parties? - 15What documents can be used to define buyer requirements?KPIs
SLAs
Contract Terms
Specifications - 16What difficulties arise in specification of service?No tangible goods
Service is variable per interpretation
Contract requirements can change over length of contract term. - 17What are the objectives of supplier performance appraisal?To identify High quality best performing suppliers
To establish how the supplier is performing against SLA
To seek improvements in service
To incentivise suppliers - 18What is a non-disclosure agreement?A confidentiality clause inserted into a contract, to protect sensitive information.
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- Diploma Negotiating & Contracting (Section 1: Legal issues formation of contract) Flashcards on 1.1 Flash Cards, created by sheenadonaldson2 on 07/10/2015.
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