Defining the Procedures of Contract Review Process

QS 9000 certification is an organization level certification which is based on quality system requirements and which are related specifically to the automotive industry. These standards were introduced by bigger automotive organizations like General Motors, Ford. Now this standard is old one or we can say obsolete and has been replaced by ISO / TS 16949 or ISO 9001 Standard. ISO/QS 9000 standard requires the supplier to establish and maintain documented procedures for contract review.

Contract review is a part of contract acquisition process. The process of contract acquisition includes marketing, prospect acquisition, tendering, contract negotiation, contract award, and finally the contract review. Consider the following example to understand the concept of contract review: in a sales situation, you may simply have a set of products and services and a sales office taking orders over the telephone or over the counter. The contract review element of this operation is the self-examining process which determines if you can supply the item requested.

In an organization which produces the product or offers services to specific customer requirements, you may, in fact, carry out all tasks in the contract acquisition process. Your organization stands benefited only when the contract review task procedure is listed along with contract acquisition process as a whole and not the isolated coverage of the contract review.

Your contract acquisition procedures need to define the following things:

1. The ways of how potential customers are persuaded to place orders or invitations to tender.
2. The ways by which invitations to tender and customer orders are dealt with
3. The ways of proposal handling and the way quotations are generated, reviewed, and approved
4. The ways of contractual negotiation
5. The ways through which contracts are accepted, promulgated and communicated to those concerned
6. How changes to contract are initiated
7. The way by which changes to contract is agreed, promulgated and communicated to those concerned
8. The establishing of different channels of communication between your organization and customer
9. The authority and responsibility of those who are permitted to interface with the customer

ISO/QS 9000 standard also specifies the stage at which contract reviews should be undertaken: before submission of a tender or acceptance of a contract. However, time to time reviewing of contract ensures you that you are contracts of short duration reviewing the contract will not be necessary. However if the contract duration extends over several months or years, it is necessary to review periodically the requirements and your capability to meet those requirements.

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