We could talk about T&C, flow-down clauses, etc. That’s a whole other seminar (or 2, or 3). This presentation is focused on the review process itself and compliance.
What can go wrong? What are we trying to prevent?
This is the “what” and “why” section of today’s presentation. We will get to the “who” and “how” sections later.
What else can we confirm with the customer?
What other expectations might be set? One of the main things I’ve learned in life is that all relationships are based on communication and expectations. And, when something goes wrong, it’s usually because of poor communication and missed expectations. How many times have you been disappointed about something, then later realized you never told the other person what you expected. In that case you failed to communicate and failed to make your expectations clear. Yes, there will be times when we communicate well, but expectations are still missed, and we will talk about that.
Have we identified and evaluated all of the risk? Do we have a template or matrix for tracking and ranking risk?
This is more of a Program Management tool, but it should be part of your overall contract review. You could even develop a tool just for the contract itself??
Who are your SMEs? What are the 7 documents? What are the 5 steps for compliance?
Efficient Contract Review for Effective Compliance
Efficient Contract Review
for Effective Compliance
Breakout Session #: C14
Presented by: Robert E. Jones, CFCM, CCCM
Date: July 22, 2013
Time: 4:00 PM – 5:15 PM
2.0 Keys to an Efficient Process
1. Identify subject matter experts (SME)
2. Define a system for tracking documents,
revisions, reviews, and approvals (Document
management, SharePoint, ERP)
3. Regular meetings and follow-up (weekly
2.1 Subject Matter Experts (SME)
• T&C - payment terms, warranty, insurance,
termination, liquidated damages, etc.
• Quality - quality requirements or
• Spec - can we build the product and meet
• Exports - product jurisdiction, classification,
and licensing requirements
2.1Subject Matter Experts (SME)
• Materials - do we have the supplies and
can we get them in time?
• Software - do we have updated test
• Planning - is there capacity to build the
• Program Management - are there any
3.0 Documents for EVERY file
1. Signed Contract or Purchase Order
– Including a record of negotiations, with
references to other documents
1. Terms & Conditions
– including any Quality clauses
1. Non-Disclosure Agreement (NDA/PIA)
2. Specification and/or Drawing
– what is being built, designed, or serviced
3.0 Documents for EVERY file
5. Statement of Work
– how and where the work is to be performed
5. Export Review
– including restricted party screening and product
or service jurisdiction and classification
5. Quote Package
– including original RFP/Q and Basis of Estimate
4.0 Effective Compliance
There are two aspects of compliance:
1. Compliance to the review process and your
2. Compliance to the contract
4.1 Compliance to the Process
1. Implement a review process
– defined process, released procedure
1. Define a document management system
2. Reporting and Metrics for TAT(turn around
4. Internal audit
– could be part of QMS/AS internal audit
4.1.1 Review Process
• Hold a Kaizen event
• Have a defined process and written
4.1.2 Document Management
• Seven documents for every file
• Defined naming and filing system
• Document retention requirements
4.1.3 Reporting & Metrics
• Define metrics
• Provide reports and feedback
• Provide training as a result of Kaizen and
• Train new employees
• Refresher training for those not actively
involved in the process
4.1.5 Internal Audit
• Incorporate into your QMS/AS audit
• Have a sister company audit
• Have another department audit
4.2 Compliance to the Contract
• Whole separate set of issues
Review & Connect
3 keys to implementing an efficient contract review
1.Identify subject matter experts (SME).
– 7 Documents for EVERY File
– 5 Steps for Effective Compliance
Robert E. Jones
Contracts Manager, Pole/Zero Corporation