The Importance of Sound Contract Drafting in the Final Stages of Tender Allocation
In business procurement, winning the tender is just a part of the commercial story. At times, a much more significant issue comes to light when you ask yourself: ‘Exactly what is being agreed by the winning tenderer, and what are the legal terms?’ This becomes an important matter at the end stages of the tender process. When the tender is awarded, a contract is set up, which determines matters such as payment rights, standards for performance, liability for delays, and grounds for termination. If companies deal with tender agreements with government agencies, drafting is crucial. Key Legal Insight Effective contract drafting at the end of the tendering process is necessary since it dictates how the terms of the tenders will be applied after award. In cases of government tendering, the final agreement will define the scope of works, the timing of payments, variation, penalties, performance, and disputes, among other factors. Effective contract drafting will...