Establish Supplier Agreements

A formal agreement is any legal agreement between the organization (representing the project) and the supplier. This agreement may be a contract, a license, or a memorandum of agreement.

• Revise the requirements to be fulfilled by the supplier to reflect negotiations with the supplier when necessary.
• Document what the project will provide to the supplier including:
  • Project-furnished facilities
  • Documentation
  • Services
• Document the supplier agreement including:
  • Establishing the statement of work, specification, terms and conditions, list of deliverables, schedule, budget, and acceptance process
  • Identifying who from the project and supplier are responsible and authorized to make changes to the supplier agreement
  • Identifying how requirements changes and changes to the supplier agreement are determined, communicated, and addressed
  • Identifying standards and procedures that will be followed
  • Identifying critical dependencies between the project and the supplier
  • Identifying the type and depth of project oversight of the supplier, procedures, and evaluation criteria to be used in monitoring supplier performance
  • Identifying the types of reviews that will be conducted with the supplier
  • Identifying the supplier’s responsibilities for ongoing maintenance and support of the acquired products
  • Identifying warranty, ownership, and usage rights for the acquired products
  • Identifying acceptance criteria
• Ensure all parties to the agreement understand and agree to all requirements before implementing the agreement.
• Revise the supplier agreement as necessary.
• Revise the project’s plans and commitments as necessary to reflect the supplier agreement.