A procurement contract is a legally binding agreement between a buyer and a supplier that outlines the terms and conditions of a purchase. Properly created procurement contracts can help organizations to reduce costs, improve supplier performance, and ensure compliance with laws and regulations. Here are the steps to create a procurement contract: 

• Define the scope of the contract: This includes determining the goods or services being purchased, the quantity, the delivery schedule, and any specific requirements or specifications. 
• Identify the parties involved: This includes the buyer and the supplier, as well as any intermediaries or agents involved in the transaction. 
• Develop the contract language: The contract language should include the terms and conditions of the purchase, including the price, payment terms, delivery schedule, warranty and any other relevant details. It should also include any legal terms and conditions, such as dispute resolution mechanisms, and termination clauses. 
• Negotiate and finalize the contract: Once the contract language has been developed, the buyer and supplier should engage in negotiations to finalize the contract. This may include discussing any additional terms or conditions and making any necessary revisions to the contract language. 
• Review and approve the contract: After the contract has been negotiated and finalized, it should be reviewed by legal and procurement professionals to ensure that it is compliant with laws, regulations, and internal policies. Once the contract has been reviewed and approved, it should be signed by the parties involved. 
• Keep the contract records: The final step is to keep the contract records and make sure that the contract is properly administered, monitored and reviewed. This includes keeping track of the deliverables, payments and any other important details of the contract. 

It's important to note that procurement contracts should be reviewed regularly, at least once a year, to ensure that they are still valid and effective. 

GE regularly reviews and renews their procurement contracts to ensure compliance with laws and regulations and improve overall performance. Through regular procurement contract review, GE has been able to identify areas of inefficiency, reduce costs, and improve overall performance. 

FactWise offers procurement SaaS solutions to a global client base of small and mid-sized product manufacturing companies. We are committed to creating a truly distinctive procurement platform that delights users and provides sustainable positive impact to the organizations we serve.