PURCHASING PROCEDURES - University of Central Lancashire
PURCHASING PROCEDURES - University of Central Lancashire
PURCHASING PROCEDURES - University of Central Lancashire
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11: CONTRACTS<br />
All formal contracts must be authorised by the Group Executive Director <strong>of</strong> Finance, usually by the<br />
signing <strong>of</strong> Supplier documentation or Contract Award Forms.<br />
Contracts will <strong>of</strong>ten take the form <strong>of</strong> 'standing <strong>of</strong>fers', i.e. a firm price quotation which remains open<br />
for a specified period (usually 12 months), so that Purchase Orders can be placed against the<br />
standing <strong>of</strong>fer as need arises. The Suppliers' prices are usually based on the <strong>University</strong>'s 'best<br />
estimate' <strong>of</strong> usage.<br />
Once a contract or standing <strong>of</strong>fer is in place, User Departments must ensure that those goods<br />
or services are not purchased elsewhere, since the <strong>University</strong> will normally have entered into a<br />
legal agreement for exclusive business with the contracted Supplier.<br />
Minor or temporary price advantages are occasionally <strong>of</strong>fered to User Departments from other<br />
Suppliers. These should be advised to the Purchasing Office but not taken advantage <strong>of</strong>, since they<br />
would normally jeopardise greater advantages from the established Supplier.<br />
Contracts or standing <strong>of</strong>fers should be placed for a period appropriate to the value and effort<br />
involved in their award process. The Purchasing Office can give advice regarding this issue.<br />
Contracts/supply arrangements should be subject to regular review and a note <strong>of</strong> the review retained<br />
on the contract file held in the Purchasing Office.<br />
Purchasing Procedures December 2011
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