Procurement clause: Copy, customize, and use instantly
Introduction
A procurement clause outlines the terms and conditions under which goods or services will be acquired by one party from another. This clause is critical for setting expectations regarding quality, delivery timelines, pricing, and other procurement-related obligations. It is commonly used in supply agreements, vendor contracts, and service-level agreements.
Below are procurement clause templates tailored to various scenarios. Copy the one you need, customize it, and add it to your contract.
Standard procurement clause
This clause establishes basic procurement terms.
The [buyer] agrees to procure [specified goods/services] from the [supplier] in accordance with the terms outlined in this agreement. The [supplier] guarantees delivery of the goods/services by [insert delivery date] and adherence to the agreed-upon specifications.
Volume-based procurement clause
This clause ties procurement to specific volume commitments.
The [buyer] commits to procuring a minimum volume of [insert quantity] of [goods/services] from the [supplier] during the term of this agreement. Failure to meet this volume may result in additional charges or renegotiation of terms.
Fixed-price procurement clause
This clause sets a fixed price for procurement.
The [buyer] will procure [specified goods/services] from the [supplier] at a fixed price of [insert amount]. The price will remain unchanged for the duration of this agreement, regardless of market fluctuations.
Competitive procurement clause
This clause requires procurement through a competitive process.
The [buyer] agrees to procure [goods/services] through a competitive process, including the solicitation of bids from multiple suppliers. The [supplier] must meet all qualification criteria outlined in [insert section] to be eligible for consideration.
Time-sensitive procurement clause
This clause establishes procurement terms for time-critical needs.
The [buyer] agrees to procure [specified goods/services] from the [supplier] with a guaranteed delivery date of [insert date]. Any delays beyond this date will result in penalties as outlined in [insert section].
Exclusive procurement clause
This clause restricts procurement to a single supplier.
The [buyer] agrees to exclusively procure [specified goods/services] from the [supplier] for the duration of this agreement. The [supplier] guarantees priority fulfillment to meet the [buyer]’s needs.
Sustainable procurement clause
This clause emphasizes environmental or ethical standards.
The [buyer] will procure [specified goods/services] from the [supplier] only if the supplier adheres to the sustainability standards outlined in [insert section]. The [supplier] agrees to provide documentation verifying compliance with these standards.
Just-in-time procurement clause
This clause supports on-demand procurement.
The [buyer] agrees to procure [specified goods/services] from the [supplier] on a just-in-time basis. The [supplier] guarantees delivery within [insert time frame] of receiving a purchase order.
Conditional procurement clause
This clause ties procurement to specific conditions.
The [buyer] agrees to procure [specified goods/services] from the [supplier] only if [insert condition, e.g., "minimum quality standards are met"]. Failure to meet these conditions will release the [buyer] from any procurement obligations.
Multi-year procurement clause
This clause outlines long-term procurement commitments.
The [buyer] commits to procuring [specified goods/services] from the [supplier] for a period of [insert duration]. Pricing and other terms will be reviewed annually to ensure continued alignment with market conditions.
Procurement with penalties clause
This clause includes penalties for non-compliance.
The [buyer] agrees to procure [specified goods/services] from the [supplier], who must adhere to the delivery and quality terms outlined in this agreement. Any failure to meet these terms will result in penalties as described in [insert section].
Emergency procurement clause
This clause supports urgent procurement needs.
The [buyer] reserves the right to procure [specified goods/services] from the [supplier] on an emergency basis. The [supplier] guarantees expedited delivery within [insert time frame] and prioritization of the [buyer]’s order.
Price-adjustable procurement clause
This clause allows for price adjustments under certain conditions.
The [buyer] agrees to procure [specified goods/services] from the [supplier]. Pricing is subject to adjustment based on [specific criteria, e.g., "market fluctuations or raw material costs"] as outlined in [insert section].
Regional procurement clause
This clause restricts procurement to specific regions.
The [buyer] agrees to procure [specified goods/services] from the [supplier] within [specified geographic region]. Any procurement outside this region requires prior written approval from the [supplier].
Procurement with service-level guarantees clause
This clause ensures adherence to service-level expectations.
The [buyer] will procure [specified goods/services] from the [supplier], who guarantees compliance with the service levels outlined in [insert section]. Failure to meet these service levels may result in contract termination or penalties.
Collaborative procurement clause
This clause supports joint procurement efforts.
The [buyer] and [supplier] agree to collaborate on the procurement of [specified goods/services], including joint planning and cost-sharing initiatives. Both parties commit to transparency and mutual accountability.
Tiered procurement clause
This clause defines procurement commitments across tiers.
The [buyer] agrees to procure [specified goods/services] in tiers, with Tier 1 commitments of [insert volume] and Tier 2 commitments of [insert volume]. Each tier has separate pricing and delivery terms as outlined in [insert section].
Procurement with confidentiality clause
This clause ensures confidentiality of procurement terms.
The [buyer] and [supplier] agree to keep all procurement terms, pricing, and delivery schedules confidential. Disclosure to third parties is prohibited without prior written consent.
Flexible procurement clause
This clause provides flexibility in procurement arrangements.
The [buyer] agrees to procure [specified goods/services] from the [supplier] with flexible delivery schedules and volumes. The [supplier] commits to accommodating changes in the [buyer]’s requirements as outlined in [insert section].
Dynamic procurement clause
This clause allows procurement terms to adjust dynamically.
The [buyer] agrees to procure [specified goods/services] from the [supplier] under terms that adjust dynamically based on [specific criteria, e.g., "market demand or seasonal fluctuations"]. Changes will be communicated in advance and must be mutually agreed upon.
Procurement with early payment discount clause
This clause incentivizes early payments.
The [buyer] agrees to procure [specified goods/services] from the [supplier] and may receive a [insert percentage] discount for payments made within [insert time frame]. Standard pricing applies to payments made after this period.
Performance-based procurement clause
This clause ties procurement to performance metrics.
The [buyer] agrees to procure [specified goods/services] from the [supplier], provided the [supplier] meets performance benchmarks outlined in [insert section]. Failure to meet these benchmarks may result in reduced procurement commitments.
Renewable procurement clause
This clause supports automatic renewals for procurement.
The [buyer] agrees to procure [specified goods/services] from the [supplier] under a renewable agreement. Terms will automatically renew for [insert duration] unless either party provides notice of termination [insert time frame] before the renewal date.
Multi-vendor procurement clause
This clause allows procurement from multiple suppliers.
The [buyer] reserves the right to procure [specified goods/services] from multiple vendors to diversify supply sources. The [supplier] is guaranteed a minimum procurement volume of [insert quantity] under this agreement.
Procurement with risk-sharing clause
This clause shares risks between the buyer and supplier.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with both parties agreeing to share risks associated with [specific factors, e.g., "price volatility or supply chain disruptions"]. Risk-sharing terms are detailed in [insert section].
Digital procurement clause
This clause governs electronic procurement processes.
The [buyer] agrees to procure [specified goods/services] from the [supplier] using the [supplier]’s digital procurement platform. Both parties agree to adhere to the electronic documentation and payment processes outlined in [insert section].
Contingency procurement clause
This clause applies to procurement during unforeseen events.
The [buyer] agrees to procure [specified goods/services] from the [supplier] during contingencies such as [specific event, e.g., "natural disasters or market shortages"]. The [supplier] commits to prioritizing the [buyer]’s orders under such conditions.
Exclusive territory procurement clause
This clause applies exclusivity to specific territories.
The [buyer] agrees to procure [specified goods/services] from the [supplier] exclusively for use in [specified territory]. The [supplier] agrees not to supply competing products within this territory during the term of the agreement.
Procurement with intellectual property rights clause
This clause addresses IP ownership of procured goods.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with the understanding that all intellectual property associated with the goods remains with the [supplier]. The [buyer] is granted a license for their use as specified in [insert section].
Procurement with cancellation rights clause
This clause allows the buyer to cancel procurement orders.
The [buyer] reserves the right to cancel procurement orders for [specified goods/services] with written notice of [insert time frame]. Any costs incurred up to the point of cancellation will be reimbursed to the [supplier].
Milestone-based procurement clause
This clause ties procurement commitments to project milestones.
The [buyer] agrees to procure [specified goods/services] from the [supplier] in alignment with project milestones. Each milestone triggers a procurement order of [insert quantity], with terms specified in [insert section].
Procurement with quality assurance clause
This clause ensures quality control of procured goods.
The [buyer] agrees to procure [specified goods/services] from the [supplier], contingent on passing quality assurance checks outlined in [insert section]. Non-compliance with quality standards may result in order rejection or renegotiation.
Subscription procurement clause
This clause supports recurring procurement under subscription terms.
The [buyer] agrees to procure [specified goods/services] from the [supplier] on a subscription basis. Deliverables will be supplied at [insert frequency], with subscription terms subject to renewal as outlined in [insert section].
Procurement with supplier substitution clause
This clause allows supplier replacement under specific conditions.
The [buyer] reserves the right to substitute the [supplier] with an alternative vendor for procurement of [specified goods/services] if the [supplier] fails to meet agreed-upon terms. Substitution will require [insert notice period].
Volume discount procurement clause
This clause incentivizes larger procurement volumes.
The [buyer] agrees to procure [specified goods/services] from the [supplier] and will receive tiered volume discounts as outlined in [insert section]. Discount rates will increase with higher procurement volumes.
Procurement with ethical sourcing clause
This clause ensures ethical sourcing practices.
The [buyer] agrees to procure [specified goods/services] from the [supplier], provided the supplier adheres to ethical sourcing standards outlined in [insert section]. The [supplier] agrees to provide documentation verifying compliance.
Tiered priority procurement clause
This clause prioritizes procurement tiers during high demand.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with Tier 1 orders receiving priority fulfillment during periods of high demand. Lower-tier orders will be fulfilled as resources allow.
Procurement with liability limitations clause
This clause limits liability for procurement disputes.
The [buyer] and [supplier] agree to limit liability related to the procurement of [specified goods/services]. Neither party shall be held liable for damages exceeding [insert amount] as outlined in [insert section].
Seasonal procurement clause
This clause supports procurement based on seasonal needs.
The [buyer] agrees to procure [specified goods/services] from the [supplier] during [specified season or period]. The [supplier] commits to prioritizing production and delivery during this time to meet seasonal demand.
Procurement with price cap clause
This clause limits price increases for procured goods.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with a price cap of [insert maximum price]. The [supplier] may not exceed this price during the term of the agreement, regardless of market conditions.
Joint procurement clause
This clause supports collaborative procurement with another buyer.
The [buyer] agrees to jointly procure [specified goods/services] with [partner buyer]. Both buyers will share costs and benefits as outlined in [insert section], while the [supplier] commits to delivering as per the consolidated order.
Procurement with early termination clause
This clause addresses rights in case of early agreement termination.
The [buyer] reserves the right to terminate procurement of [specified goods/services] with [insert time frame] written notice. The [supplier] will be compensated for any completed orders or incurred costs up to the termination date.
Procurement with supply guarantees clause
This clause ensures uninterrupted supply.
The [buyer] agrees to procure [specified goods/services] from the [supplier], who guarantees uninterrupted supply for the duration of the agreement. Any disruptions must be communicated within [insert time frame] and resolved promptly.
Procurement with diversified sources clause
This clause allows for multiple sourcing to mitigate risks.
The [buyer] reserves the right to procure [specified goods/services] from multiple suppliers to mitigate risks of supply chain disruptions. The [supplier] will remain the primary vendor for a minimum of [insert percentage] of procurement volumes.
Procurement with dispute resolution clause
This clause outlines a process for resolving procurement disputes.
The [buyer] and [supplier] agree that any disputes arising from the procurement of [specified goods/services] will be resolved through [insert method, e.g., "mediation or arbitration"] as outlined in [insert section].
Procurement with performance monitoring clause
This clause ensures ongoing evaluation of supplier performance.
The [buyer] agrees to procure [specified goods/services] from the [supplier], subject to periodic performance reviews. If performance benchmarks outlined in [insert section] are not met, the [buyer] may renegotiate or terminate the agreement.
Procurement for trial purposes clause
This clause supports procurement on a trial basis.
The [buyer] agrees to procure [specified goods/services] from the [supplier] for a trial period of [insert duration]. The continuation of the agreement will depend on the successful completion of the trial and mutual satisfaction.
Procurement with exclusivity renewal clause
This clause ties exclusivity to renewal terms.
The [buyer] agrees to exclusively procure [specified goods/services] from the [supplier] for [insert duration]. Exclusivity may be renewed based on the [supplier]’s performance and compliance with agreement terms.
Procurement with predefined escalation clause
This clause addresses price increases over time.
The [buyer] agrees to procure [specified goods/services] from the [supplier] under predefined escalation terms. Prices may increase by [insert percentage] annually, subject to mutual agreement and market conditions.
Procurement with delivery flexibility clause
This clause provides flexibility for delivery schedules.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with delivery schedules adjustable by mutual consent. Any changes must be communicated at least [insert time frame] in advance.
Procurement for special projects clause
This clause applies to one-off or unique procurement needs.
The [buyer] agrees to procure [specified goods/services] from the [supplier] specifically for [insert project or event]. The terms of this agreement apply solely to this project and do not create obligations for future procurement.
Procurement with predefined cancellation penalties clause
This clause specifies penalties for canceled orders.
The [buyer] agrees to procure [specified goods/services] from the [supplier]. If the [buyer] cancels any orders without valid cause, they will incur a penalty of [insert amount or percentage] as outlined in [insert section].
Procurement with warranty clause
This clause guarantees quality and durability.
The [buyer] agrees to procure [specified goods/services] from the [supplier], who guarantees that the goods/services will meet the agreed-upon specifications and include a warranty period of [insert duration].
Procurement with inventory management clause
This clause ties procurement to inventory levels.
The [buyer] agrees to procure [specified goods/services] from the [supplier] based on inventory thresholds outlined in [insert section]. The [supplier] is responsible for notifying the [buyer] of any inventory shortages in advance.
Procurement with intellectual property licensing clause
This clause addresses IP rights for procured goods.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with the understanding that intellectual property rights remain with the [supplier]. The [buyer] is granted a license for usage as specified in [insert section].
Procurement for multiple locations clause
This clause supports delivery to multiple sites.
The [buyer] agrees to procure [specified goods/services] from the [supplier] for delivery across multiple locations. The [supplier] must coordinate delivery schedules and quantities with the [buyer]’s designated points of contact.
Procurement with cost-plus pricing clause
This clause ties pricing to production costs.
The [buyer] agrees to procure [specified goods/services] from the [supplier] at a cost-plus pricing model, where the price is calculated as [insert percentage] above the supplier’s production costs. Cost details must be documented and provided to the [buyer].
Long-term procurement commitment clause
This clause secures procurement commitments for an extended duration.
The [buyer] agrees to procure [specified goods/services] from the [supplier] for a period of [insert duration], with procurement volumes reviewed and adjusted annually based on mutual agreement.
Procurement with expedited shipping clause
This clause addresses urgent delivery needs.
The [buyer] reserves the right to request expedited shipping for [specified goods/services]. The [supplier] agrees to prioritize such orders and may charge additional fees as outlined in [insert section].
Procurement with environmental compliance clause
This clause ensures adherence to environmental standards.
The [buyer] agrees to procure [specified goods/services] from the [supplier], provided the supplier complies with environmental regulations outlined in [insert section]. Non-compliance may result in contract termination.
Procurement with volume flexibility clause
This clause allows adjustment of procurement volumes.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with the ability to increase or decrease procurement volumes by up to [insert percentage] based on demand fluctuations. Adjustments must be communicated [insert time frame] in advance.
Procurement with milestone-based discounts clause
This clause ties discounts to project milestones.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with discounts applied upon reaching procurement milestones as outlined in [insert section]. Milestone completion will be jointly reviewed and verified.
Multi-phase procurement clause
This clause supports phased procurement schedules.
The [buyer] agrees to procure [specified goods/services] from the [supplier] in multiple phases, with each phase defined in [insert section]. Progression to subsequent phases is contingent on the successful completion of prior phases.
Procurement with shared cost savings clause
This clause encourages cost-saving initiatives.
The [buyer] and [supplier] agree to collaborate on cost-saving initiatives related to the procurement of [specified goods/services]. Any savings achieved will be shared equally between both parties.
Procurement with non-compete agreement clause
This clause prevents suppliers from working with competitors.
The [supplier] agrees not to provide similar [goods/services] to the [buyer]’s competitors during the term of this agreement. In return, the [buyer] commits to procuring [insert percentage or volume] exclusively from the [supplier].
Procurement with quality certification clause
This clause mandates certified quality standards.
The [buyer] agrees to procure [specified goods/services] from the [supplier], provided the supplier maintains quality certifications such as [insert certifications, e.g., "ISO 9001"]. The [supplier] agrees to provide proof of compliance upon request.
Procurement with inflation adjustment clause
This clause ties pricing to inflation rates.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with pricing subject to annual adjustments based on the [insert index, e.g., "Consumer Price Index"]. Adjustments must be mutually agreed upon and documented.
Procurement with forecasting clause
This clause requires advance demand forecasting.
The [buyer] agrees to provide the [supplier] with demand forecasts for [specified goods/services] every [insert time frame]. The [supplier] will use these forecasts to plan production and ensure timely delivery.
Procurement with penalty for late delivery clause
This clause imposes penalties for delivery delays.
The [buyer] agrees to procure [specified goods/services] from the [supplier]. If the [supplier] fails to deliver by the agreed-upon deadline, a penalty of [insert amount] per day of delay will apply.
Procurement with exclusivity for custom goods clause
This clause restricts procurement to custom-developed goods.
The [buyer] agrees to procure [custom-developed goods/services] exclusively from the [supplier]. The [supplier] guarantees that these goods/services will not be offered to other buyers without the [buyer]’s consent.
Procurement with supplier diversity clause
This clause emphasizes inclusion in the supply chain.
The [buyer] agrees to prioritize procurement from diverse suppliers, including [specific categories, e.g., "small businesses or minority-owned enterprises"]. The [supplier] agrees to partner with such entities where applicable.
Procurement with trial period clause
This clause supports procurement on a trial basis.
The [buyer] agrees to procure [specified goods/services] from the [supplier] for a trial period of [insert duration]. Future commitments depend on the satisfactory completion of this trial.
Procurement with automated ordering clause
This clause supports streamlined reordering processes.
The [buyer] agrees to procure [specified goods/services] using the [supplier]’s automated ordering system. Both parties commit to maintaining accurate and updated order details within the system.
Procurement with product liability coverage clause
This clause mandates liability protection for procured goods.
The [buyer] agrees to procure [specified goods/services] from the [supplier], who guarantees that all goods are covered by product liability insurance. Proof of coverage must be provided upon request.
Procurement with termination for convenience clause
This clause allows for no-fault termination.
The [buyer] reserves the right to terminate the procurement agreement for convenience, with [insert time frame] notice. The [supplier] will be compensated for completed and in-progress orders at the time of termination.
Procurement with product recall clause
This clause outlines responsibilities in the event of a recall.
The [buyer] agrees to procure [specified goods/services] from the [supplier], who accepts responsibility for any recalls due to defects or non-compliance. The [supplier] agrees to bear all associated costs and provide replacements promptly.
Procurement with minimum order clause
This clause sets a minimum order quantity for procurement.
The [buyer] agrees to procure a minimum quantity of [insert quantity] of [specified goods/services] per order. Orders below this threshold may incur additional fees as outlined in [insert section].
Procurement with deferred payment clause
This clause supports deferred payment options.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with payment deferred for [insert duration] after delivery. The [buyer] must adhere to the payment schedule outlined in [insert section].
Procurement with escalation clause for disputes
This clause outlines a hierarchy for resolving disputes.
The [buyer] and [supplier] agree that any disputes arising from the procurement of [specified goods/services] will follow an escalation process starting with informal discussions and progressing to arbitration if unresolved.
Procurement with demand-driven pricing clause
This clause allows pricing adjustments based on demand.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with pricing adjusted dynamically based on demand forecasts provided every [insert time frame]. Adjustments must be mutually agreed upon.
Procurement with shared logistics clause
This clause supports shared delivery logistics.
The [buyer] and [supplier] agree to collaborate on logistics for the procurement of [specified goods/services], including shared transportation and storage solutions to minimize costs.
Procurement with automatic renewal clause
This clause ensures the agreement renews automatically.
The [buyer] agrees to procure [specified goods/services] from the [supplier] under an agreement that automatically renews for [insert duration] unless notice of termination is provided by either party [insert time frame] before the renewal date.
Procurement with fixed delivery windows clause
This clause sets fixed times for delivery.
The [buyer] agrees to procure [specified goods/services] from the [supplier], who must deliver during the fixed delivery windows of [insert time frames]. Deliveries outside these windows require prior approval.
Procurement with waste reduction clause
This clause emphasizes environmentally conscious procurement.
The [buyer] agrees to procure [specified goods/services] from the [supplier], who commits to minimizing waste during production and delivery. The [supplier] must provide periodic reports on sustainability efforts.
Procurement with multi-year pricing review clause
This clause includes periodic price reviews for long-term agreements.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with pricing reviewed and adjusted every [insert time frame] to align with market conditions and cost changes.
Procurement with optional add-ons clause
This clause allows procurement of additional services or goods.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with the option to add supplementary goods or services at rates outlined in [insert section].
Procurement with audit rights clause
This clause provides the buyer with auditing privileges.
The [buyer] reserves the right to audit the [supplier]’s processes, pricing, and compliance with the terms of this agreement related to the procurement of [specified goods/services]. Audits require [insert time frame] prior notice.
Procurement with rebate incentives clause
This clause incentivizes procurement through rebates.
The [buyer] agrees to procure [specified goods/services] from the [supplier] and will receive a rebate of [insert percentage] for total annual purchases exceeding [insert threshold].
Procurement with non-binding forecasts clause
This clause allows non-binding demand estimates.
The [buyer] will provide non-binding forecasts for the procurement of [specified goods/services]. The [supplier] agrees to use these forecasts for planning purposes but understands they do not constitute firm orders.
Procurement with liability cap clause
This clause limits the liability for procurement-related issues.
The [buyer] and [supplier] agree to a liability cap of [insert amount] for any claims arising from the procurement of [specified goods/services]. This cap excludes liability for gross negligence or willful misconduct.
Procurement with staggered delivery clause
This clause supports phased delivery schedules.
The [buyer] agrees to procure [specified goods/services] from the [supplier], with deliveries staggered over [insert duration] according to a schedule agreed upon in [insert section].
Procurement with integrated reporting clause
This clause emphasizes real-time reporting integration.
The [buyer] agrees to procure [specified goods/services] from the [supplier], who will provide real-time reporting on order status, delivery timelines, and inventory levels through an integrated system.
Procurement with competitive pricing clause
This clause ensures the supplier offers market-competitive pricing.
The [buyer] agrees to procure [specified goods/services] from the [supplier], who guarantees pricing within [insert percentage] of the average market rate. Regular pricing benchmarks will be reviewed and validated.
Procurement with multi-location sourcing clause
This clause allows procurement from multiple supplier locations.
The [buyer] agrees to procure [specified goods/services] from the [supplier], who will utilize multiple production or distribution locations to ensure timely delivery and risk mitigation.
Procurement with force majeure provisions clause
This clause accounts for procurement disruptions due to unforeseen events.
The [buyer] and [supplier] agree that procurement obligations for [specified goods/services] may be suspended in the event of force majeure circumstances, as outlined in [insert section]. Both parties must communicate promptly during such events.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.