PROCUREMENT AND BUILDING CONTRACTS

Here are some of the most important elements to consider when drafting a procurement contract: 

1. Object of the contract: describe in detail the object of the procurement contract, including the specifications of the works, the services to be provided or the goods to be delivered. 

1. Payment Terms and Conditions: clearly and concisely establish the payment terms and conditions, including the frequency of payments, the payment methods accepted and any penalties for late payments. 

1. Times and methods of execution: specify the times and methods of execution of the project, including any milestones or important stages to be achieved during the execution of the contract, with everything that follows in terms of penalties or rights of termination or replacement by law of the company. 

1. Responsibilities of the parties: clearly define the responsibilities of each party involved in the procurement contract, including the duties, obligations and responsibilities relating to the performance of the contract. 

1. Guarantees and responsibilities: establish any guarantees offered by the parties, including guarantees of quality or conformity and define the responsibilities in the event of default or non-compliance with the guarantees. 

1. Terms of termination of the contract: define the methods and terms for terminating the contract, including the valid reasons for termination and the procedures to be followed in case one of the parties decides to end the contract early. 

1. Risks and insurance: discuss the risks associated with project execution and determine who will be responsible for those risks. Also, consider the need for project-specific insurance. 

1. Confidentiality and non-disclosure clauses: include confidentiality and non-disclosure clauses to protect confidential or proprietary information shared during the performance of the procurement contract. 

1. Competent court and applicable law: establish the competent court in the event of disputes and specify the law that will regulate the procurement contract.