The Element Contract Review in ISO/QS 9000
· Contract reviews must be planned and then held with customer. A procedure for coordinating and holding the review is required. Contracts for the supplier will exist under two situations
· Between the organization and a customer
· Between the organization and a sub-contractor
Where the sales of product and services are covered by contracts there must be clear evidence of a review of terms and conditions. Since it deals with the agreement, the sales of product and services are covered by contracts and there must be clear evidence of a review of terms and conditions in the sales giving rapt attention to the following:
· The organization providing the service shall ensure that all requirements of product/service are agreed and clearly understood by all concerned parties(includes the customer)
· Checking whether your organization has the necessary resources, organization and facilities.
The element contract Review in ISO/QS9000 states that the organization should review contracts periodically and have procedures for the review process. Records of these reviews are to be maintained. While framing the review the organization shall include the following:
· Make sure that the requirements of the contract are well defined.
· Any differences from your original quotes are resolved
Amending contracts assists you to address changing customer needs and this requirements needs you to define the process of contract review and the people responsible to handle the same. Any contract should have a review process time to time to address loopholes and also to solve differences amicably.
Effective contract review will result in reducing the costs of product and service by eliminating wastage of material and effort due to contractual misunderstandings.
Thus in order to avoid confrontations due to contractual misunderstandings, organizations has to review the contracts in accordance with ISO standards and the organization has to coordinate with the customer’s organization, as appropriate, and convey effectively the contractual understandings. Communicational channels and interfaces have to be well set with the customer.
It is important to finalize a contract after reviewing it in the presence of both the customer and the product realization department. This is to make sure we understand customer needs in a better way and that we are able to make a product that fulfils their needs.
Now Let’s check your understanding by doing — SELF ASSESSMENT QUESTIONS
1. Contract review is the process of gathering the__________________________ needs of the customer.
2. It is important to finalize a contract after reviewing it in the presence of both_________________ and_____________________ department.
3. According to ISO/QS standard all organizations should review contracts and have procedures of the ____________process.