The Master Procurement Agreement serves as a foundational document for establishing and managing long-term procurement relationships in the Philippines. It is particularly useful for businesses engaging in regular, repeated procurement activities where having a single overarching agreement is more efficient than negotiating individual contracts for each transaction. This agreement type complies with Philippine commercial law requirements while incorporating international best practices in procurement. The Master Procurement Agreement typically includes comprehensive terms covering ordering procedures, pricing mechanisms, quality standards, delivery requirements, and risk allocation, while also addressing specific Philippine regulatory requirements such as tax considerations and local business practices. It's designed to provide flexibility for various types of goods or services while maintaining consistent standards and procedures across all transactions.
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1. Parties: Identification of contracting parties including full legal names, addresses, and registration details
2. Background: Context of the agreement and relationship between parties
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Scope of Agreement: Framework terms governing the overall procurement relationship
5. Ordering Process: Procedures for placing and accepting purchase orders under the agreement
6. Pricing and Payment: Price determination, payment terms, invoicing requirements, and currency provisions
7. Delivery and Acceptance: Terms for delivery, inspection, acceptance, and rejection of goods
8. Quality Requirements: Quality standards, warranties, and quality assurance processes
9. Term and Termination: Duration of agreement, renewal provisions, and termination rights
10. Representations and Warranties: Standard and specific warranties from both parties
11. Confidentiality: Protection of confidential information and trade secrets
12. Compliance and Ethics: Regulatory compliance, anti-corruption, and ethical business practices
13. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations
14. Force Majeure: Events excusing performance and related procedures
15. Dispute Resolution: Process for resolving disputes including jurisdiction and governing law
16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Insurance Requirements: Specific insurance obligations - include when high-value or high-risk goods are involved
2. Intellectual Property Rights: IP ownership and licenses - include when procurement involves technology or branded products
3. Data Protection: Data handling and privacy requirements - include when personal data processing is involved
4. Environmental Compliance: Environmental standards and certifications - include for environmentally sensitive products
5. Export Control: Export compliance requirements - include for international procurement
6. Business Continuity: Disaster recovery and business continuity requirements - include for critical supply relationships
7. Security Requirements: Physical and IT security requirements - include when handling sensitive materials or accessing systems
8. Subcontracting: Terms for engaging subcontractors - include when supplier likely to use subcontractors
1. Schedule 1 - Products and Pricing: Detailed list of products/services and associated pricing structure
2. Schedule 2 - Service Levels: Performance metrics and service level requirements
3. Schedule 3 - Technical Specifications: Detailed technical requirements for products/services
4. Schedule 4 - Order Form Template: Standard form for placing orders under the agreement
5. Schedule 5 - Key Contacts: List of key personnel and contact details for both parties
6. Schedule 6 - Quality Standards: Detailed quality requirements and testing procedures
7. Schedule 7 - Compliance Requirements: Specific regulatory and compliance obligations
8. Appendix A - Special Terms: Any special terms applicable to specific products or services
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