A procurement contract is an agreement by which a government or a corporation get goods or services from other companies through the process of bidding. The agreement ensures that the best quality goods and services are received at the least possible cost in order to meet the buyer’s requirement of quality and quantity. The government and the companies lay down rules and regulations which encourage open and fair competition among companies, minimizing cases of fraud and corruption.
The companies which supply the goods and services are responsible for ensuring the good quality and make sure that they are delivered to the right location at the right time. A procurement contract must lays down terms and conditions related to remuneration and mode of payment, the term of the contract, transportation, storage of materials and other details. A procurement contract is usually associated with the government and is regulated by government rules because it often enters into large procurement deals with companies which supply defence materials or construction materials etc.
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Sample Procurement Contract Agreement
Procurement Contract Agreement
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