Pricing Arrangements, Essay Example

Pricing is one of the most important elements in a procurement contract. The price of the contract determines the actual value of things purchased in the procurement contract. Different purchases attract different costs depending on the nature of the items or the services involved. Different items have different pricing approaches, for instance a service may be priced according to its quality which depends on the skills and qualifications of the person providing the service. This paper looks at contract pricing for an initiative to pursue three procurement contracts that entail the following; purchasing a new building to host the company’s offices, purchasing a new company car and developing new software.

The pricing arrangement for buying a new building

The first step is ask the seller to his or her price at which the house is being sold, then compare the price quoted by the seller with the price expected by the organization which is stated in the purchasing requisition. Contact property valuation experts to value the building and ask the value to quote the price which is acceptable between the buyer and the seller. Compare the quoted price of the valuation experts with other prices in the market and determine whether the specifications and features of the house match the quoted price.

Pricing arrangement for buying a new car

The procurement officer compares the price of other cars of the same model in the market. The procurement officer then contacts a reputable supplier of the model to determine the quoted price for the car. The procurement officer compares the quoted price by the supplier against the features and qualities of the car such features may include year the car was made, mileage and comfort.

Pricing arrangement for b developing new software module

In this case, the procurement officer compares the prices quoted by the various companies that provide software development. The next step is to evaluate the features of the software and compare them with quoted price. It is important to determine compatibility of the software with other applications used in the organization to avoid any type of inconveniencies.