What are the different kinds of contracts?

Tradogram offers two distinct contract types to help you manage different kinds of supplier agreements and spending patterns. Choosing the right one ensures your team stays within budget while maintaining the necessary flexibility for their purchases.

Time & Material Contract

A Time & Material contract is used to track the specific quantity of items or services ordered over a set timeframe. When you create this contract, it is strictly based on the specific line items added, their quantities, and their pre-negotiated prices.

  • Fixed Constraints: When creating a requisition or PO from this contract, users are locked into the specific items listed.
  • Quantity & Price Limits: Users cannot exceed the quantity allotted on the contract and must use the price specified.
  • Expiry: The contract is only valid until its designated expiry date.
  • Best For: Recurring product or service purchases where the items and prices are fixed.

Example Use Case: A 12-month agreement with a supplier for 1,000 units of "Safety Goggles" at $5.00 each. Your team can pull from this contract throughout the year until they reach 1,000 units.

General Contract

A General contract is designed to track a total monetary budget rather than specific item quantities. It is the most flexible option for managing broad spend categories or subscriptions.

  • Financial Constraint: The only enforced limit is the total dollar amount of the contract.
  • Item Flexibility: Users are not locked into specific items; they can add any database items or external items to a PO linked to this contract.
  • Price Flexibility: Unlike Time & Material, any line item at any price can be added, provided the total value of the contract is not exceeded.
  • Best For: Tracking spending against a total budget, such as service subscriptions or general maintenance funds where the specific parts needed may vary.

Example Use Case: A $10,000 "IT Services" contract. Your team can order various items—keyboards, software licenses, or hourly repair services—from that supplier until the total $10,000 spend is reached.

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