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

The chinese pension fund system, The Chinese Pension Fund System Mainlan...

The Chinese Pension Fund System Mainland China has a rapidly aging population. This is attributable to two main factors - the one-child policy plus substantial improvements in l

Why do analysts calculate financial ratios, Why do analysts calculate finan...

Why do analysts calculate financial ratios? Ratios are comparative measures.  For the reason that the ratios show relative value, they permit financial analysts to compare inf

What do you mean by variable working capital, Q. What do you mean by Variab...

Q. What do you mean by Variable working capital? Permanent or fixed: Permanent or fixed working capital is the minimum amount which is required to ensure effective utilization

Finance: Scenario Analysis, Scenario analysis Your firm, Agrico Products, i...

Scenario analysis Your firm, Agrico Products, is considering a tractor that would have a cost of $35,000, would increase pretax operating cash flows before taking account of deprec

Negotiating and closing transaction, Negotiating and Closing Transaction: ...

Negotiating and Closing Transaction: A diverse set of skills and very thorough preparation is required for negotiating and closing a divestiture transaction. Facts and informat

How are the hibor, Q. How are the HIBOR, HSI and HSI futures related? T...

Q. How are the HIBOR, HSI and HSI futures related? The HIBOR and HSI are contrariwise related. So futures on HIBOR and HSI are as well inversely related. Display

Non-callable versus non-refundable bonds, A bond is said to be curr...

A bond is said to be currently callable if the issue is not protected against early call provision. But most new bond issues, even if currently callable, us

Constructing the binomial interest rate tree, How to calculate the up anh d...

How to calculate the up anh down factor in the binomial interets rate tree

Ratio analysis, define ratio analysis. explain the advantages of ratio anal...

define ratio analysis. explain the advantages of ratio analysis

Security required in bank finance, Q. Security Required in Bank Finance? ...

Q. Security Required in Bank Finance? 1) Hypothecation: Under this arrangement, the borrower is provided with working capital finance by the bank against the security of mova

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