What Should Be in My Procurement Agreement

What Should Be in My Procurement Agreement

What Should Be in My Procurement Agreement?

• “Am I liable if a supplier lets my client down?”
• “Do I need to disclose commissions or mark-ups to clients?”
• “Who is responsible when a product arrives damaged or faulty?”
• “What if my client wants a refund for goods that I actually sourced?”

In today’s market, procurement rules apply to everyone in the creative and professional space, whether its interior designers, architects or otherwise.

What is a procurement clause?

A procurement clause is a section in a contract that sets out the rules for how products or services are sourced, bought, or arranged for a client. It explains who is responsible for ordering, paying for, and managing goods—helping everyone know where risks and duties lie.

If you order items for your clients, coordinate with suppliers, or manage purchases on their behalf, you need clear procurement clauses. These are important for architects, event planners, builders, shopfitters, and creative agencies—anyone involved in picking, buying, or recommending products and services. Good procurement clauses protect you from disputes, set client expectations, and ensure you meet legal requirements in Australia.

You might be wondering how this all works in practice. Let’s look at a real-world scenario:

Recently, a local architect based in Melbourne was asked by a client to oversee the sourcing and delivery of custom light fixtures for a boutique project.

The architect agreed, keen to provide a streamlined service. Unfortunately, one of the main suppliers delivered the wrong product and then refused to refund or replace it. Because the architect’s contract didn’t clearly outline who was responsible for supplier errors, the client expected the architect to resolve the problem—and cover the cost. The stress, delays, and financial fallout could have been avoided with solid procurement clauses that set out each party’s roles, duties, and recourse if things went wrong.

Some laws are there to protect consumers

Australian Consumer Law isn’t only for retailers and manufacturers.

If you’re buying and reselling (or even just arranging purchases for) your clients, you could be classed as a “supplier.” That means statutory guarantees, refund obligations, and liability for defective products may apply—even if you never touch the goods yourself.

Ilse Crawford, a well-known British designer, has said that design is about making things work beautifully—not just for aesthetics, but with fairness and practicality in mind.

For this blog, her words mean that your contracts and procurement processes should be clear, ethical, and effective—just like great design itself.

We generally recommend that contracts have transparency as the law requires this including:

1. Clear disclosure of commissions, referral fees, and mark-ups
2. Explicit contract terms about who owns products
3. Contracts that hold up legally – never copy and paste from others

Procurement Pitfalls to avoid

We find that many professionals run into problems because their contracts are unclear or thrown together from different sources.

If you want your contracts to protect you, make sure they’re clear about who does what, who pays, and who is responsible if something goes wrong. Spell out how things like refunds and warranties will be handled, and be upfront about any extra fees or commissions. Avoid messy, borrowed templates—get a pro to check your contract if it’s old or if your business has changed. Simple, up-to-date contracts make life easier and stop problems before they start.

It’s always best to use a lawyer for your contracts because legal experts can spot risks and problems you might miss. Lawyers make sure your agreement protects your business, is clear, and follows Australian law. They can help you avoid hidden traps, make sense of complicated terms, and even negotiate better conditions for you.

FAQs

1. Am I a “supplier” under Australian Consumer Law if I only order on behalf of clients?

Yes, you may still be considered a supplier, particularly if you coordinate payments or logistics, or add a mark-up.

2. Do I need to disclose commissions or mark-ups to clients?

Absolutely. Recent legal updates require clear, written disclosure.

3. Can digital contracts and e-signatures protect me legally?

Usually but there are conditions eg that they include clear terms.

4. What if a product fails?

If a product fails, it isn’t always easy to know who is responsible—especially if you helped organise the purchase. The business or person who sold it could be on the hook, but sometimes, those who arranged or facilitated things can also end up sharing liability. This is why your contract matters. There’s no one-size-fits-all answer—get legal advice if you’re unsure.

5. Is it risky to use a contract I found online?

We think so. This because online templates often miss important details, may not fit your specific business or industry, and might not reflect the latest Australian laws.

How Sharon Givoni Consulting Can Help

Drafting tailored procurement and supply contracts that manage liability, set clear boundaries, and enhance client trust.

Reviewing and updating existing agreements to comply with the latest Australian Consumer Law requirements.

Advice and training for business owners and creatives—including those in design, tech, and events—on how to stay protected and legally confident.

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Please note the above article is general in nature and does not constitute legal advice.

Please email us info@iplegal.com.au if you need legal advice about your brand or another legal matter in this area generally.