When using e-procurement tools to source services make sure you have a well-defined change of control process.
Todays post is by Ron Southard, CEO at SafeSourcing Inc.
Awards of business, contracts and statements of work are all important after a services event has taken place. However, if you want to ensure the savings associated with your new services contract make sure you identify or reference a structured change of control process in your terms and conditions.
Change happens. It can result from poorly designed specifications, terms and conditions, quoting instructions and other data related to a bid. The normal process for managing these changes is a change of control process which governs how any changes to the services being provided as identified in the actual bid.
The change of control is normally managed as a request that communicates the requested changes to the services deliverables. Normally the change request will describe the following at a minimum.
- The change
- The reason for the change
- The effect the change may have on the existing Statement of Work.
- Impact on cost or savings
In most cases a project manager or the associate with responsibility for managing the program deliverables will be required to submit a written change request to the contracted or warded supplier. The supplier will then develop and return the response to the contracting company.
The contracted supplier and the contracting company will then review the proposed change request and either approve it, modify it, or reject it. When approved the contracting company as well as the contracted supplier must sign the change request to authorize the work as well as the implementation of the work and its potential impact on the existing project plan or project timeline.
If you do not want erosion in your savings, make sure you spend the time to cover this process in your bid parameters.
In order to learn more, please contact a SafeSourcing Customer Services Associate. Be sure to ask them about our Risk Free Trail Program