Contract as Purchasing Process Control Tool

Abstract

The contract between the state customer and the contractor (supplier) is considered in the article, on the one hand, as a stage of making a management decision in the procurement process, and on the other hand, as an element of its control mechanism. The author structures the reasons for non-fulfillment of the contract, the costs associated with its implementation, considers its role and main features. A detailed study of the parameters of the types of purchases identified on the basis of the author’s classification allowed to justify the need for an individual approach to contract development in a number of them. For this purpose, the author has developed and presented in the article an algorithm for determining the need for an individual approach to the development of a state contract, the justification of the importance of the stage of concluding a contract in the process of procurement control by the customer is given. The approach proposed in the article to the organization of customer control is necessary for effective procurement management and is aimed at reducing risks and the number of terminated contracts.