Specifications for contracts, Financial Management

Specifications

Following are the various specifications that we need to apply while creating contracts.

  • If the goods to be procured are covered under Bureau of Indian Standards (BIS), then you should select specifications as framed by BIS. If BIS is not available, you should frame the required specifications.
  • The specifications should present a clear statement of the required standards of workmanship, materials and performance of the goods to be procured. For example, you need to build an aircraft. You require  workmanships  who  are  highly  qualified  engineers  with relevant  experience  of  building  aircraft.  If  you  just  mention  as engineer the right skill set may not be known.
  • The specifications should meet the actual and essential needs of the project or goods. Over-specification will unnecessarily increase the cost and may suppress competition.
  • The specifications should include the latest technology. This avoids procuring obsolete items that increases the unnecessary cost.
  • Minimum functional specifications should be given as not to make it restrictive and attract reasonable number of competitive bids.
  • Except in the case of proprietary purchase from a selected single source, the specifications should not contain any brand name, make, or catalogue number of a particular manufacturer. If the same is unavoidable due to some compelling reasons, then the brand name of manufacturer should be followed by your company's brand name or equivalent name.
  • All dimensions incorporated in the specifications should be indicated in metric units. If due to some unavoidable reasons, dimensions in FPS (foot pound second) units are to be mentioned, then corresponding equivalents in the metric system should also be stated. The specifications should use the words not less than or not more than rather than fixed parameters.
  • The specifications for equipment should lay emphasis on factors like efficiency, optimum fuel power consumption, use of environmental friendly material, and low maintenance costs.
  • The specifications should have the requirement for warranty and Annual Maintenance Contracts (AMC) requirements.
  • The specifications and the technical details must be expressed with clarity. Where ever necessary, the specifications should be supplemented with drawings/figures for additional clarity.
Posted Date: 9/28/2012 3:11:59 AM | Location : United States







Related Discussions:- Specifications for contracts, Assignment Help, Ask Question on Specifications for contracts, Get Answer, Expert's Help, Specifications for contracts Discussions

Write discussion on Specifications for contracts
Your posts are moderated
Related Questions
What are the Corporate Bonds? Corporate bonds are issued by huge corporations while they require long-term financing. They generally make interest payments double a year (sem

NPV and Other Criteria Waddington International Inc. has $20 million to invest. It is considering whether to build a new factory in Western Canada. The land and the building wil

Q. Show the Working capital in a business? Working capital in a business is essential since of operating cycle. However the need for working capital doesn't come to an end afte

Which of these two methods is better: discounting the Equity Cash Flow or discounting the Free Cash Flow? The results we get by discounting the Equity Cash Flow and the Free Ca

What is an annuity? An annuity is a sequence of equal cash flows, spaced consistently over time.

Repo rates vary from transaction to transaction. They depend upon a variety of factors like: Collateral's quality Repo term

Role of Trustee in Pension Fund: Trustees are people in control of long-term asset allocation of a pension scheme. Whatever benchmark they set will, as we shall see, influence

Lenders in the US insist upon some kind of mortgage insurance. There are broadly two types of mortgage insurance - one is

a. Talk about the role of banking in business.  b. Set out the precise role played by Investment Banking and the challenges of corporate governance.

What is the meaning of Breakeven point?