Specifications for contracts, Financial Management

Assignment Help:

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.

Related Discussions:- Specifications for contracts

Leverage, Evaluate the importance of leverage in financial management of a ...

Evaluate the importance of leverage in financial management of a small scale company

Working of australian securities and investment commission, Working of ASIC...

Working of ASIC ASIC as an independent government body enforces and regulates company and financial services laws to protect consumers, investors and creditors. It keeps the pu

What are the time dimensions of the income statement, What are the time dim...

What are the time dimensions of the income statement, the balance sheet, and the statement of cash flows?  Hint: Are they videos or still pictures?  Explain. The income stateme

Price hike, should a company pursue price hike or focus on increased sales

should a company pursue price hike or focus on increased sales

Residual method to find cyclical variation, Residual Method We know th...

Residual Method We know that a time series consisting of annual data for longer periods is depicted by trend lines. This facilitates us to isolate the component of secular tre

WACC, WHY ORDINARY SHARES DIFFER IN DIFFERENT COMPANIES

WHY ORDINARY SHARES DIFFER IN DIFFERENT COMPANIES

Warrant, It is a long-term call option to purchase common stock at a specif...

It is a long-term call option to purchase common stock at a specified price.

Corporate debt instruments, Corporate debt instruments are the financ...

Corporate debt instruments are the financial obligations of a corporation having priority over the claims of the shareholders (equity or preferred) at the time of

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd