Procurement Contracts - Why Your Contract Should Have a Business Continuity Plan

Good contracts are designed to cater for a wholeneeds to be maintained;o Do not let the service
range of unforeseen events that can affectprovider "gold plate" the means for reacting to
delivery. Unfortunately, the really big, catastrophicevents - after all, the cost of providing for
events (such as floods or pandemics) often resultbusiness continuity may have to be recovered in
in a complete breakdown in the ability of thethe price to you;o Audit the plans from time to
supplier to perform the tasks required by thetime to ensure that they are still capable of
contract. A business continuity plan is a plan ofmeeting your needs. Testing under as near to
what to do if the service is interrupted or fails allpossible real circumstances often generates new
together. Although it is the responsibility of theideas or identifies things that need to be tightened
supplier, it is good practice to deal with the planbut recognise there is a cost to carrying out
jointly. Here are some good practices in puttingthese tests;o Drawing up continuity plans are not
together a business continuity plan.o Make surea one-time event at the start of the contract.
the plan is developed "top down". Identify whatCircumstances change and the continuity plan
services need to be maintained in whatneeds to reflect that;o Identify and plan for how
circumstances - this is about maintaining criticalthe service could be delivered by another party
services under a range of possible events fromshould the incumbent fail altogether; ando Do not
minor breakdowns to life threatening disruptions;oassume that an alternative source can be found
Derive the requirements for continuity from theat short notice when needed. Research the
top down assessment and prioritisation of whatmarket and have a transfer plan in place.