Six points a growing company should have clear before signing with a supplier, and how to turn them into a reusable criterion.
A supplier contract is rarely read in full before it is signed. It usually arrives in a hurry, in the supplier's template and with pressure to get started. These are the points that, in our experience, avoid the most problems when reviewed before signing.
1. What exactly is being contracted
It sounds obvious, but the scope is often described in an annex, a quote or an email nobody attached. Check that the contract describes the service or product, quantities, service levels and what is not included. What is not written is not enforceable.
2. Price, adjustments and payment terms
Check whether the price can change (indexation, annual adjustment, volume-based variation) and under which rule. Confirm payment terms, deadlines and what happens in case of delay. A high late-payment interest or an immediate service-suspension clause can cost more than the price itself.
3. Term and exit
How long does the contract last? Does it renew automatically? How much notice is required to avoid renewal? Automatic renewals with 60 or 90 days' notice are one of the most frequent causes of unnecessary payments. Put it on a calendar with an owner.
4. Liability and warranties
Look for the supplier's liability caps. It is normal for them to exist, but they should be reasonable relative to the contract value and the harm a breach would cause your operation. Also check what warranty is offered and for how long.
5. Confidentiality and personal data
If the supplier will have access to your company's or your clients' information, the contract must include confidentiality obligations and, where applicable, a personal data processing agreement in line with Colombian Law 1581 of 2012.
6. Who signs and how disputes are resolved
Confirm that the person signing for the supplier has the authority to do so, and review the dispute-resolution clause: arbitration can be faster but also more expensive for a mid-sized company.
Turning it into a criterion
The value is not in reviewing this contract, but in making sure the next person on your team who receives a supplier contract knows what to look for. A one-page checklist with the thresholds your company accepts (for example, "we do not sign automatic renewals with more than 30 days' notice") turns a one-off review into a permanent capability.
This content is informational and does not replace advice on a specific case.