Is there a need to create a "Contract Review" checklist or document?

[Jeri Mackay]

Hi,

Back again for help and/or opinions! Is there a need to create a "contract review" checklist or document? Right now what we have in place is whenever there is a new contract or supply agreement the affected departments get together and meet to discuss and outline any potential problems we see. Notes are kept and that is currently our contract review. I have been getting input from various sources we should have a standardized checklist/document to capture this information.

What is the group consensus - will the way we have been doing it pass muster with an auditor or should I create (unless someone has one to share) a contract review checklist?

Jeri

[Mike S.]

Jeri,

IMO it is whatever works for you. Depending on the situation, our contract review can be as simple as the salesperson looking at the order and deciding it is a repeat order for a recently made part in which case no one else need review it, or as complex as passing the order to several people with a checkoff sheet where they add comments or just sign-off that it is okay. As a CYA thing, we use a standard form as a record that CR was done, although sometimes only one person (sales) initials one line that says "repeat order". If you keep notes now, that to me would be the record or proof that it was done, but if it is a repeat order and no one makes any record of any kind an auditor might ding you on it. For me, the 1 piece of paper to make the simple CR form was worth it.

[db]

The main "pro" to checklist is that nothing gets forgotten. It also promotes consistency.

The main "con" is instills rigidity, and could prevent key items to be overlooked.

I recommendation is the use of a checklist with some standard items on it also a method to add other concerns that are not on the standard list.

[JodiB]

I agree with both Mike and Dave.

Checklists are great and can also be used to assign responsibility for any action items that come out of that meeting, such as determining if the schedule can be met or getting a vendor quote, etc. It makes sure that nothing slips between the cracks and everyone knows who needs to do what. I created one for my last company and it significantly improved the capture and communication of information about the order.

[Mike S.]

Jeri,

I didn't in any way mean to say that your method of meeting to discuss contract review face-to-face has to stop! If you can do that in a timely manner with the right people this may be the best way to do it where issues can be discussed and hashed-out quickly. However, I would still do a CYA in the form of a 1 piece of paper contract review form for the reasons stated above by all. I'll bet you can make a good form in 15 minutes, run some copies, and you'll be in business in no time. Decide how long you wanna keep the review form for record retention issues while you're at it. We usually just stick it in the customer's sales folder and leave it there for as long as the folder is kept -- the easiest thing for us to do.

[db]

...this may be the best way to do it where issues can be discussed and hashed-out quickly...

I would still do a CYA in the form of a 1 piece of paper contract review form...

I agree a meeting format would be ideal, and I have companies that use the checklist as the agenda for the meeting (or roll the checklist into the agenda). The checklist or form then serves as your "evidence" of contract review and more importantly, accompanied with the minutes gives a glear record should any problems arise.

[Kathleen Brown]

Does anyone have a good example of what one of these "simple" contract review forms looks like? I am struggling with a situation where the contract review form is multiple pages, and tried to cover every possible question.

a newbie, Kathleen Brown

[Madfox]

Who says there has to be a form? If you want documented evidence of "contract review" why add extra paper?

I ran a Comm Shop in the Navy, and we stamped every message with a template for the Skipper to assign review. The Skipper would acknowledge the message and "check box" what dept. heads he wanted to acknowledge review. As I cleaned the message boards one on my jobs was to make sure each delegated dept. head had reviewed the message. (That wasn't mgt policy, that was my own...ensuring that at least monthly I saved one Dept Head's career!)

Cheers,
The Madfox
(CO signed in purple, ala Nero, XO in green.)