At Expense Consulting, we’ve reviewed a great many vendor contracts. From time to time, we’re still surprised at what we find embedded in agreements that pass over our desks. A typical scenario: client has told us they want to see what they can do on their own first. Then, they bring us in to see if we can find additional savings. Once we start our analysis, we find that the agreements have provided us with a significant handicap. So, we’re providing a few of the most critical “do’s” and “don’ts” as a public service.
Sign multi-year agreements that have no “out” provisions after the first year
Ever have an agreement longer than 5 years
Allow everyone in the organization to sign any vendor agreement other than top level managers after passing legal
Have a well-documented policy in place regarding who has signing authority
Make sure price change rules are clearly
specifiedConsider using expert assistance for contract negotiations
While it seems simple, it’s truly amazing how many organizations don’t follow the guidance listed above and find themselves in a state of deep regret. There’s a lot more to purchasing than just getting three quotes and choosing the lowest one. Consider seeking the assistance of Expense Consulting for a comprehensive review of all of your vendor agreements.
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EnergyCenter Every business consumes energy. We hope you find this chart useful when benchmarking your energy costs. Please note, Expense Consulting is a licensed utility aggregator, so be sure to contact us for the best possible energy pricing.
About Expense Consulting
Expense Consulting is a full-service accounts payable auditing and cost reduction consultancy, helping organizations significantly reduce operating expenses. Since 2009, we've helped hundreds of organizations recover millions of dollars of over-billings and have secured millions of dollars in future cost savings. To learn more about reducing your organization's expenses, contact us at 860.761.3500 or visit us at www.expenseconsulting.com