How are you planning your new financial year – April fool?

Monday, March 31st, 2014

No doubt your processes to engage and manage suppliers and contractors have served you well. Is it now time – right at the commencement of your new financial year – to confirm they are fit for purpose and capable of supporting your objectives during the next phase of your organisation’s development?

Working with your stakeholders, including project managers and legal teams, the key activities of a timely strategic expenditure review include;

  •  Review the current processes and expenditure plan
  •  Determine future contracting requirements
  •  Propose and recommend the most appropriate procurement process
  •  Develop or revise the document/s e.g. risk mitigation
  •  Create guidance documents for internal and external use

In essence, collate data to inform your decision-making in determining a contracting strategy for 2014/15 to facilitate future procurements.

10 Facets to review include:

  1.  Your predicted scope of future procurement in terms of likely projects and contracts requiring a mix of supply market solutions, including Joint Ventures and Prime Contractors who have a complex supply chain
  2.  Your commitment to Partnering Agreements
  3.  Your commitment to input based contracts
  4.  The funding and other liabilities that arise from your contractual agreements
  5.   Future ownership of IPRs and financial rewards for long-term exploitation of the IPRs
  6.  Your risk appetite and how that impacts on contract terms and conditions
  7.  Rights of termination and liabilities arising therefrom
  8.  Your rights of audit and reporting mechanisms
  9.  Your Governance requirements
  10.  Whether Framework Agreements are appropriate for long-term provision of strategic services

A short piece of work and a valuable one. How are you planning your new financial year?

Steve Ashcroft, your first point of contact for advice and support on how to engage and manage suppliers, can be reached on 01744 20698 or email

 

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