Before you sign a vendor contract or commit to a quote, run through this checklist. These are the 15 things most commonly overlooked in SMB procurement — and they are the things most likely to cause problems later.
Scope and specification
1. Is the scope fully defined? Check that the contract or quote describes exactly what will be delivered, with no ambiguous language that could later justify a narrower interpretation.
2. Are materials specified by brand and grade, not just category? Generic material descriptions allow substitutions you may not want.
3. Is the scope of work match your requirements document? Go back to your original brief and verify the quote covers everything.
Pricing and payment
4. Is this a fixed price or an estimate? Estimates can escalate. If it is an estimate, get a written cap or a clear change order process.
5. Are all exclusions listed and priced separately? Read the exclusions list and add back the realistic cost of each item.
6. What are the payment terms? Verify upfront payment percentages, milestone payment triggers, and final payment release conditions.
7. Is VAT/tax included or excluded from the price? Particularly important for international procurement.
Timeline and delivery
8. Is the start date confirmed or conditional? Some vendors quote a start date that is conditional on material availability or other projects completing.
9. What is the completion timeline, and what happens if they are late? Look for liquidated damages clauses or at minimum a written commitment.
10. What is the delivery or access requirement? Do you need to prepare anything before work starts?
Quality, warranty, and legal
11. What is the warranty period and what does it cover? Get warranty terms in writing. Verbal warranties are rarely enforceable.
12. Who is liable for damages during the work? Verify the vendor has appropriate insurance coverage.
13. Is there a termination clause? Under what conditions can either party exit the contract, and with what notice?
14. Is the contract governed by your country’s law? International vendors may include foreign jurisdiction clauses that complicate disputes.
15. Have you documented your decision rationale? Before signing, record why you chose this vendor over alternatives. This becomes important if the decision is ever questioned.