Specifications for contracts, Financial Management


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

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