Procurement contracts are usually required by government agencies that are seeking the provision of goods and services from vendors. In these situations, the agencies and bidders are often required to comply with legislation governing the procurement process, and contract terms may even be dictated by statute in some cases. These legal requirements can be burdensome and may make the procurement process more rigorous for sellers who want to work with government agencies.
A procurement agreement is legally binding on each of the contracting parties, so an entity entering into a contract should carefully review all of the business terms and conditions in the contract prior to signing. Additionally, parties entering into an agreement should consult their respective lawyers to ensure the contract is appropriate for the situation at hand.
Construction procurement contracts are common, and they are usually issued when a seller is providing new works, refurbishment, or maintenance project services to a buyer. These agreements can be more complicated than other types of procurement agreements, so given the complex nature of these contracts, buyers and sellers may require the services of an attorney who specializes in construction law.