If you’re managing a real estate space or organization, you can’t do it all by yourself. In order to keep your space running on a day-to-day basis, you have to hire additional vendors or suppliers.
But, for many managers, the process of searching for and securing a vendor or supplier can be overwhelming. If you’ve never negotiated or written a third-party vendor contract, you may not be sure of where to start.
Take your first step by contacting CTG Real Estate Services today.
Our team of professionals has completed many vendor and supplier searches for clients, and that includes drafting and finalizing supplier contracts and agreements within the real estate industry. Whether you’re looking for vendors to help you complete a renovation project, or looking to add some extra benefits to an existing office space, we can help.
When you contact our professionals, we’ll guide you through every part of this process. In the article below, find out what you can expect as far as our services for creating vendor agreements.
The Basics of a Vendor Agreement
It’s obvious: Because every manager’s needs and goals are different, every contract between that client and a vendor will be unique. One vendor agreement format won’t work for everyone; creating the best vendor contract agreement for a particular situation will require a great deal of forethought, discussion and detail.
However, there are some general aspects of every vendor supplier agreement. These are necessary to ensure a contract is thorough and respects the needs and wants of both parties involved.
1. Expected Services and Products
The expected services or products you receive from a vendor should be the focus of your entire vendor agreement. After all, this is the reason you are hiring this specific professional in the first place.
Your team should have already made clear what your product or services goals and needs were earlier, when you were creating your statement of work (which our firm can assist you with), receiving RFPs and evaluating bids. Your vendor contract agreement should detail what was discussed. Both parties should ensure these expectations are addressed in the final vendor contract form.
This part of a standard vendor contract should include details such as:
- Quantity of products or services
- Expectations for quality checks and assurances
- Timelines for delivery
- And more
2. Price and Payment
Of course, any third-party vendor agreement should also include expectations for pricing. Both parties need to understand what the vendor will be paid for their services before those services even begin.
Because every client has different needs for their space or organization, many vendors or suppliers will negotiate pricing before it is finalized in a vendor supplier agreement. Chris Gardner can always assist you through these negotiations to ensure your budget and needs are met.
Often, the price and payment section of a standard vendor agreement will include:
- How much the services cost
- What that cost will include (timeline, quantity, scope of services, etc.)
- How payments will be made (payment method, frequency, etc.)
- Details for situations like late charges, overcharges, changes in contract, and more
3. Confidential Information
Before finalizing a relationship with a vendor or supplier, your team should think long and hard about how you will protect your confidential information. A certain degree of information must be shared with third-party vendors to ensure a smooth transition and that the services put into place will work effectively for your needs.
Your third-party vendor agreement should address issues such as:
- Ownership scope of shared materials
- Resulting work product
- Attendant rights
- Steps taken to safeguard both parties’ confidential information
Often, supplier contracts and agreements also contain an IP checklist that lays out the steps to take to protect information and should a breach occur.
4. Changes in Scope and Deliverables
As your business or space continues to grow, it’s only natural that you can expect changes in your needs and goals. A vendor contract should address what will happen in these situations. Think about what is most likely for you as a client: Will you need to increase the quantity of product delivered each month? Do you anticipate a renovation or building change in the future that could change how your services are completed?
Because Chris Gardner is experienced in all areas of the real estate industry, his knowledge can help you anticipate any future changes. He can then make sure they are accurately addressed in your vendor agreement.
Every contract includes a beginning and an end — specifically, the terms of the agreement’s termination. While it’s exciting to think about the new journey that a vendor supplier agreement will bring, it’s equally important to think about how this contract will eventually come to a close. This can include a natural end when services are no longer needed or a more abrupt end if one party fails to uphold their part of the bargain.
Both parties in an exclusive vendor contract should agree on the conditions for immediate termination. A vendor and client should both have certain termination rights before a contract is finalized. This is, of course, in addition to the agreed-upon period of time that is set with the initial contract.
This aspect of a vendor agreement can be tricky but, when you work with CTG Real Estate Services, we have an established network of contract lawyers we can recommend to finalize your service agreement in a way that is legal and safe for all involved.
Need help creating your third-party vendor agreement? Look no further than CTG Real Estate Services. Chris Gardner is here to guide you through your entire vendor selection process, and that includes creating a final vendor contract that meets your needs and expectations. Schedule a consultation with us today to learn more.