What is the first step in the contracting process?

The first step in the contracting process is to define the requirements and scope of work. This foundational step is crucial because it establishes what exactly needs to be achieved from the contract. Clearly defining requirements involves understanding the needs of the organization, including specifications, delivery timelines, quality standards, and any other relevant criteria that will guide the contract.

By taking the time to outline these elements, organizations can ensure that they are on the same page with suppliers and that the expectations are well-communicated. This clarity helps prevent misunderstandings later in the process and sets a solid groundwork for negotiations and contract drafting. Without defining requirements and scope first, the other steps—such as negotiating terms, drafting the contract, and signing the agreement—may be misaligned with the actual needs of the organization, leading to potential issues in fulfilling the contract.