Contract Negotiations

The contract negotiations commence right after the selection of one or more possible partners (short list) in the request for proposal process. Active Sourcing supports the client in the negotiations of a fair outsourcing contract, in order that no onesided dependency to the outsourcing partner occurs.

Framework agreement

Our specialists have in-depth knowledge of the commercial, legal and qualitative aspects of the framework agreement at their disposal. The most important and most delicate parts of the framework agreement are:

• Regular and premature termination of contract
• Malpractice / malus
• Accountability and guarantee
• Benchmarking / price verification

Our consultants are responsible for guaranteeing that the negotiations are following precise rules and are conducted with the minimal collaboration on the part of the clients. Due to the fact that most negotiations are exposed to competition, the efficient handling of negotiations is crucial.

Individual contracts

During the negotiations of individual contracts, the technical and commercial outrank the legal expertise.

Important elements of individual contracts are:

• Complete description of services
• Differentiation of internal and external services
• Variable prices for major cost drivers
• Service level agreements (SLA) and corresponding malus payments
• Key processes (based on standards like ITIL, CMMI)
• Collaboration / governance

Active Sourcing is supporting your request for an active or a passive role in the negotiations, offline editing of contract documents, contract design or taking the function as direct contact for the providers. Furthermore, our responsibility includes the organisation and the compliance of the deadlines.

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