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The Contract Review

aqav-0812This is the fourth in a multi-part series from the Association for Quality in Audio Visual Technology (AQAV) and its push for everyone in AV to adopt the AV9000 standard for quality management. Read the first article here, the second articlehere and the third article here

By Mario J. Maltese, CTS-D, CTS-I, CQT

Contract review is a seriously neglected process in a company’s quality management system of processes. Yet it is one of the utmost importance, since it defines and clarifies the scope of an RFP (Request for Proposal) or purchase order from a customer. An order for audio visual technology is oftentimes a complex list of deliverables, since it usually includes specialized services as well as technologically complex materials.

What exactly is promised in a proposal, or for that matter, requested in an RFP or bid specification?  Any ambiguity in product, expected practices, or performance will definitely lead to quality problems and an unsatisfied customer. Given that the very definition of quality is conformance to requirements, how can one assure quality if those requirements are misunderstood?

There is a tendency among business developers to be as nebulous as possible in preparing a proposal, as if they fear being held accountable for something not delivered as promised. This generally results in them being held responsible because the system was not delivered as promised!

Contract Review is the process that includes tasks to be performed before the proposal goes out, and then again when the order is received.

 

  • Does management have the resources (personnel, equipment, financial, technical expertise) to do the job on time while assuring quality? If not, you would want to make sure that whatever resources are needed are being funded in the cost estimate. For example, are outside contractors required to augment existing labor resources in order to complete the job on time?
  • Does the job require a different quality plan? That is, does management need to do things a little differently because of the technology in the job?
  • Does the job require updating the quality control procedures, inspecting and testing techniques and equipment (for example, acquire a digital generator)?
  • Are there special verification requirements at various stages of this project? For example, are mock-ups or samples required to obtain subjective approval from the customer?
  • Are there different standards of acceptability of this project (for example, NFPA 72)?
  • Are the terms, schedule, insurance requirements and details of the deliverables acceptable, or have they changed from the time of proposal to the time the order was actually received?

“There is nothing so useless as doing something efficiently that which should not be done at all.” – Peter F. Drucker

“Quality is never an accident. It is always the result of high intention, sincere effort, intelligent direction, and skillful execution. It represents the wise choice of many alternatives.” – Willa A. Foster

“Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them.” – W. Edwards Deming

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