Vendor Contracts
What are vendor contracts and why are they important?
Vendor contracts are formal agreements made between the association and vendor once the board has selected a company or provider. Contracts protect parties by clearly stating what is expected of each party, and provide a roadmap to follow if something does not go according to plan. When procuring significant services, or expensive materials, associations are exposed to a higher level of risk. Without a clear description of the deliverables, timelines and responsibilities of each party, enforcing the contract becomes increasingly difficult.
Below are some common terms and conditions that regularly appear in formal vendor contracts:
Project specifications
Early termination
Data protection and breach notification
Confidentiality
Indemnification
Force majeure
Service level agreements
Severability
Contracts spell out the terms and conditions that the parties entering the contract must abide by. They go beyond line-item product descriptions and costs.
