Contracting for Services: A Review of the Contracting Process

Author(s):

Jim Haining, C.P.M., A.P.P., MBA
Jim Haining, C.P.M., A.P.P., MBA, Director of Procurement, Insituform Technologies, Inc., 636-936-1231; jhaining@napsm.org

91st Annual International Conference Proceedings - 2006 - Minneapolis, MN

Abstract

Contracting for services differs from the typical purchasing contract for materials. The sourcing process is different and has a different set of challenges. We will review the basics of contracting for services, including what you need to receive from your end users and suppliers prior to formalizing a contract. Some of the important elements include the detailed Scope of Work (SOW), the contract terms and conditions, and the process for finding a supplier. Essential in contracting services is the development of a clear, concise and effective scope of work is essential to ensure that the supplier(s) understand the requirements of the good/service request. This understanding will lead to superior supplier performance and overall success.