Reference document

Finalisation and Initiation of Contract
Contract finalization is the process followed by the Procurement Officer to form a written contract with the supplier. The purpose of contract finalization is to ensure that all proper elements are in place to conclude a written agreement that protects the interests of the Alliance and reflects the offer made by the supplier in response to the Alliance’s requirements. A contract is formed on a basis of an “offer” and an “acceptance” and in the context of procurement in the Alliance, is a written document, containing the agreement, and the terms and conditions, between the Alliance and the supplier, and which serves as proof of the obligation. Contractual instruments in the Alliance are Purchase Orders (POs), contracts for services and works, systems contracts, blanket Purchase Orders, lease agreements, etc. In the Alliance, contracts are based on competitive solicitation processes. However, under certain circumstances (e.g. direct contract, sole source or complex contracts); in order to proceed to form a contract with the selected supplier, the Procurement Officer may need to clarify and negotiate terms and conditions. Proper procedures should be followed to ensure that no negotiations take place with respect to issues already agreed at the solicitation stage and that the parties are clear about their respective rights and responsibilities. In certain cases, negotiations may be carried out with the selected supplier regarding payment terms, supplementary terms and conditions, delivery, etc, soon after contract award. Those changes shall be treated as contract modifications and executed in accordance with the rules established in this Manual for the amendment of contracts
Supplier Management Processes