Create Contract Relationship

Negotiating and agreeing final terms, deliverables and schedules

After the offers have been obtained your procurement team should then negotiate and agree the terms and conditions of contract with the selected supplier.

The service levels, service descriptions and schedules should all be negotiated and agreed.

The contract has then to be let. You should also debrief unsuccessful suppliers and file records of the transaction appropriately.

Client-agency agreements with marketing or advertising agencies

In 1998 we produced jointly agreed contracts in association with the Incorporated Society of British Advertisers (ISBA) and the Institute of Practitioners in Advertising (IPA). Since their introduction, they have had a marked effect on the marketing and advertising industry.

Research undertaken in 1998 showed that 45% of client-agency relationships were not covered by full, written signed contracts. Research in 2002 showed that more than 71% of respondent agency finance directors were using the pre-prepared industry contracts in their negotiations, and the take-up is still growing.

The three contracts for creative, media and full service agencies were updated in May 2005 and are now available for you to download. In addition, new guidelines for dealing with copyright and a client guide for The freedom of Information Act 2000 are also available.

Working along similar lines to the ISBA/IPA/CIPS project, a new document for suggested contract terms has been jointly produced by CIPS, ISBA and the Public Relations Consultants Association (PRCA) for use with public relations agencies. Our members can download this document here after they have logged on.

Core clauses of contractual terms and conditions

Our legal committee has produced an example set of terms and conditions intended primarily for use in intellectual property contracts. They would also be suitable for contracts for the supply of goods and/or services. If you prepare a contract containing any of these clauses we recommend that you check that they are compatible with the remainder of the contract.

Please note. These clauses are the copyright of The Chartered Institute of Purchasing & Supply which licenses its members to use them in support of their employment.

Our online bookshop also has model forms covering several areas in the field of IT.