Supplier contract compliance
Negotiating a supplier contract is one task. Making sure the supplier follows it is another, and it often gets less attention. A compliance review checks whether the terms you agreed are the terms you are living with.
Fairview Audit connects you with a partner firm that does this work. Fairview does not perform reviews itself.
What the review looks at
A partner firm compares the contract with what happened afterward. It looks at pricing, discounts, rebates, service levels, billing rules and any obligations the supplier took on. Where the two do not match, the firm tries to find out why. The cause might be a billing error, a missed amendment or a change nobody recorded. Written terms such as audit rights decide what you can check, so the contract itself matters.
Reviews of this kind can cover many kinds of suppliers, including:
- Facility and maintenance services.
- Temporary labor.
- Mailroom services.
- Office and warehouse supplies.
- Security services.
- Transaction processing.
- Printer and copy management.
- Freight and logistics.
- Franchisee and royalty arrangements.
Some firms also look at internal or supply chain processes around the contract. Coverage varies by firm. [CONFIRM: a partner firm supplies and approves the list of supplier types covered]
What you provide
Your partner firm will confirm its list. A typical request includes:
- The contract and any amendments, schedules or letters of understanding.
- Estoppel certificates, where they apply.
- Supplier correspondence about additional charges.
- A detailed payment history for each supplier, ideally in electronic form.
- Invoices chosen by statistical sampling, with supporting data.
- A list of issues you have already noticed.
- Contact details for your team and for each supplier team.
Statistical sampling picks invoices by a chance-based method, so findings from the sample can indicate what holds across the whole set. Keep the original files, not only summaries.
What happens after you submit a request
You send a request through one of the Fairview forms. A partner firm contacts you directly. You discuss scope and terms with the firm, share your documents, and receive a report of what it found.
If a supplier has not followed the contract, you and the firm agree on how to raise it. Many businesses want to keep the supplier relationship intact, so the approach is a joint decision. Fees and terms are between you and the partner firm. Some partner firms work on a contingency basis.
Who this suits
This type of review suits businesses that rely on recurring supplier contracts and have not checked billing against terms for a while. It may be worth considering when:
- A contract has been amended several times.
- The person who negotiated it has left.
- Invoices arrive in volume and are paid without line-by-line checks.
- A supplier changed its billing system.
- You are about to renew and want to know how the current deal performed.
Industry context matters. See how this applies to healthcare, technology and manufacturing and construction.
How Fairview matches you
Pick the request path that fits: larger business, smaller business, or not sure or another need. Each has its own form. The size of your business affects which type of firm fits. There is no fixed cut-off. Matched requests go to the partner. On the not sure path, Fairview matches by hand.
An independent partner firm that specializes in supplier contract compliance handles this work. Fairview Audit makes the match. We do not perform the review ourselves.Who does the work
Frequently asked questions
Is this the same as an accounts payable review?
They overlap. A contract review starts from the agreement and asks whether it was followed. A payment review starts from what was paid. See accounts payable audit for that side.
Will the supplier be contacted?
Possibly, once findings are agreed. Your partner firm will explain the plan before anyone contacts the supplier.
Do I need an electronic payment history?
Electronic files are easier to analyse. Ask your partner firm what formats it can accept.
Can I review contracts with a landlord this way?
Leases have their own considerations. See lease audit and compliance.
Related pages
Tell us what you need reviewed. We match you by hand with an independent partner firm. You keep your existing vendors.Find out what you are overpaying.