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Procurement Agreement for Hong Kong

Procurement Agreement Template for Hong Kong

A comprehensive legal agreement governed by Hong Kong law that establishes the terms and conditions for the procurement of goods and/or services between a buyer and supplier. This document outlines the rights, obligations, and responsibilities of both parties, including specifications, pricing, delivery terms, quality standards, and performance requirements. It incorporates Hong Kong-specific legal requirements and commercial practices, ensuring compliance with local regulations while providing a robust framework for managing procurement relationships. The agreement includes provisions for risk allocation, dispute resolution, and ongoing relationship management.

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What is a Procurement Agreement?

The Procurement Agreement serves as the primary contractual framework for organizations seeking to establish formal procurement relationships in Hong Kong. This document is essential for businesses requiring a structured approach to purchasing goods or services, whether for one-time significant purchases or ongoing supply arrangements. It addresses key aspects of procurement including specification of goods/services, pricing mechanisms, quality standards, delivery requirements, and risk allocation. The agreement incorporates specific provisions required under Hong Kong law and commercial practice, ensuring compliance with local regulations such as the Contracts Ordinance, Sale of Goods Ordinance, and Competition Ordinance. It is particularly valuable for organizations seeking to establish clear governance and risk management frameworks for their procurement activities, while maintaining flexibility to accommodate various types of goods and services.

What sections should be included in a Procurement Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context of the procurement relationship and general intent of the parties

3. Definitions: Defined terms used throughout the agreement

4. Scope of Supply: Details of goods/services to be provided and general obligations

5. Pricing and Payment Terms: Price, payment schedule, invoicing requirements, and payment methods

6. Delivery and Acceptance: Delivery terms, timelines, acceptance criteria and procedures

7. Quality Requirements: Quality standards, specifications, and compliance requirements

8. Warranties and Representations: Warranties regarding goods/services and general business warranties

9. Term and Termination: Duration of agreement and termination rights

10. Intellectual Property Rights: Ownership and usage rights of IP involved in the procurement

11. Confidentiality: Protection of confidential information exchanged during the relationship

12. Liability and Indemnification: Risk allocation between parties and indemnification obligations

13. Force Majeure: Events excusing performance and related procedures

14. Governing Law and Jurisdiction: Hong Kong law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including notices, amendments, etc.

What sections are optional to include in a Procurement Agreement?

1. Insurance: Insurance requirements when dealing with high-value goods or risk-prone services

2. Compliance with Laws: Specific regulatory compliance requirements for regulated industries or products

3. Environmental Requirements: Environmental standards and compliance for relevant goods/services

4. Security Requirements: IT/physical security requirements for sensitive procurements

5. Personnel Requirements: Specific requirements for supplier personnel when relevant to services

6. Business Continuity: Business continuity requirements for critical supply relationships

7. Data Protection: Specific data protection obligations when personal data is involved

8. Anti-Corruption Compliance: Detailed anti-corruption provisions for high-risk or government-related procurement

9. Change Control: Formal change management procedures for complex procurement relationships

10. Service Levels: Detailed service levels and KPIs for service-based procurement

What schedules should be included in a Procurement Agreement?

1. Schedule 1 - Goods/Services Specification: Detailed technical specifications of goods/services to be provided

2. Schedule 2 - Pricing Schedule: Detailed pricing information, including unit prices and volume discounts

3. Schedule 3 - Service Levels and KPIs: Detailed performance metrics and measurement methods

4. Schedule 4 - Implementation Plan: Delivery or implementation timeline and milestones

5. Schedule 5 - Quality Requirements: Detailed quality standards, testing procedures, and acceptance criteria

6. Schedule 6 - Form of Purchase Order: Standard form for individual purchase orders under the agreement

7. Schedule 7 - Key Personnel: List of key personnel and their roles (for service procurement)

8. Schedule 8 - Approved Subcontractors: List of approved subcontractors if applicable

9. Schedule 9 - Business Continuity Plan: Detailed business continuity procedures for critical supply

10. Schedule 10 - Contract Change Procedure: Detailed process for implementing changes to the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Experience Letter

Cost

Free to use
Relevant legal definitions























































Clauses













































Relevant Industries

Manufacturing

Technology

Retail

Healthcare

Financial Services

Construction

Energy

Telecommunications

Logistics

Professional Services

Education

Hospitality

Automotive

Aerospace

Pharmaceutical

Food and Beverage

Relevant Teams

Procurement

Legal

Finance

Operations

Supply Chain

Risk and Compliance

Commercial

Internal Audit

Project Management

Vendor Management

Relevant Roles

Procurement Manager

Supply Chain Director

Chief Procurement Officer

Purchasing Manager

Vendor Manager

Contract Manager

Legal Counsel

Commercial Director

Operations Manager

Finance Director

Risk Manager

Compliance Officer

Business Unit Head

Project Manager

Category Manager

Sourcing Specialist

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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