Broker Check

Guidelines for Purchasing Contracts

July 27, 2021
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Workers compensation experts Mark Walls and Kimberly George as part of a series of "Out Front Ideas" webinars recently hosted a session with the risk management and procurement teams of the State of Colorado and SEPTA. As summarized by International Risk Management Institute, "The Perils of Purchasing for Public and Private Entities" offers guidance on how to draft purchasing contracts to receive the best possible value.

  • Vendor selection must be fair and transparent. Public entities must comply with statutory requirements, but private companies should also be open to all qualified bidders.
  • Requests for proposals should be clear and comprehensible, including all requirements.
  • Risk and insurance requirements should be tailored to the purchase or project. Avoid the "one size fits all" approach.
  • Procurement must consult with risk management, budget and accounting in constructing proposals.       
  • Start the process early to make sure vendors have enough time to understand the requirements.
  • Consider which risks to retain and which to transfer.
  • Don't make decisions solely on lowest price.