What is a Vendor Agreement?
Simply, an agreement is a harmony of opinion toward something. However, a vendor agreement, according to uslegal.com, is an agreement that is legalized and clearly states the terms and provisions of the work to be performed by a contractor to a client. This written agreement includes some basic information such as the date, time, and location to where the services must be provided. Since this is a legal and binding contract, it is enforceable by law when the customer and the vendor sign the agreement.
How to Make a Good Vendor Agreement
To make your vendor agreement effective, first of all, do a lot of research. Then work closely with your client and address what they need. To help you win your client's signing on the agreement is not only establishing a good relationship with them but also making use of your customer's word. This is a simple trick to make the most sense of the business agreement. Here is a guide to help you make a good vendor agreement.
1. Address Needs and Problems
Your contract agreement should start with realizing your client's needs and problems. Again, use your client's words in addressing these because it will resonate with them more. The clients will see to it if you are able to recognize what they need and being able to make a solution for it.
2. Include Objectives
Of course, you can't do something without a goal or more. Include in your business or sales agreement what you aim in your endeavor. Write down what you want to attain in the project; however, do not include the details in achieving your goals because that's for the next section.
3. Scope of Work
Probably, the scope of work is very common in every business or marketing agreement. Here you are now going to write down in detail how you are going to achieve the objectives that you described prior to this part. In this section, it is important that you specify every scope of work you need to perform. With this, you will be able to protect yourself from doing extra work apart from what you signed up for. Specify what work you must perform.
A timetable dictates the span of time your project will be done. Before anything else, if possible, try to think of the timetable your clients might work upon. It could be in a month's time, weeks, or days.
5. Propose the Budget
Just like any other project, money can be a question. Same as the timetable, you can give the client a rough budget plan that is needed in a project. Even a range is fine as long as it is transparent, along with the planning and spending of the project. It is also healthy for clients to know the money that they are shelling out from their pockets.
6. Project Evaluation
This part is where you assess if the objectives were met. This time you will know if you hit your target. Also, during the project evaluation, you can know if the project is successful or not. Include these business evaluation report criteria on any vendor agreement you create.