Preferred Supplier Agreement Template for New Zealand

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Key Requirements PROMPT example:

Preferred Supplier Agreement

"I need a Preferred Supplier Agreement for my technology manufacturing company based in Auckland, with strong IP protection clauses and specific provisions for regular supply of electronic components starting from March 2025, including quality control measures suitable for tech manufacturing."

Document background
The Preferred Supplier Agreement is designed for use in commercial relationships where an organization wishes to establish a formal, long-term supply arrangement with a preferred vendor in New Zealand. This document is particularly valuable when a company has identified a reliable supplier and wants to secure preferential terms, pricing, and service levels for ongoing purchases. The agreement typically results from a supplier selection process and formalizes the parties' commitment to a strategic supply relationship. It includes comprehensive terms covering ordering processes, performance standards, risk allocation, and operational requirements, all structured to comply with New Zealand law and commercial practices. The document is especially useful for organizations seeking to streamline their procurement processes, secure supply chain reliability, and achieve cost efficiencies through volume commitments and preferential pricing.
Suggested Sections

1. Parties: Identifies and provides full legal details of all parties to the agreement

2. Background: Sets out the context and purpose of the agreement, including the supplier's selection process and intention to establish a preferred supplier relationship

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Appointment and Scope: Establishes the supplier's appointment as preferred supplier and defines the scope of goods/services covered

5. Term and Renewal: Specifies the initial term of the agreement and any renewal options

6. Supply Obligations: Details the supplier's core obligations regarding the provision of goods/services

7. Ordering Process: Outlines the procedure for placing and accepting orders under the agreement

8. Pricing and Payment: Specifies pricing structure, payment terms, and invoicing requirements

9. Service Levels: Establishes performance standards and metrics for measuring supplier performance

10. Quality Requirements: Sets out quality standards and compliance requirements for goods/services

11. Delivery and Acceptance: Details delivery requirements and acceptance procedures

12. Warranties: Specifies warranties provided by the supplier regarding goods/services

13. Insurance and Liability: Outlines insurance requirements and liability limitations

14. Termination: Specifies termination rights and procedures

15. Confidentiality: Establishes obligations regarding confidential information

16. General Provisions: Contains standard boilerplate clauses including governing law, notices, and assignment

Optional Sections

1. Intellectual Property Rights: Required when the supply involves software, branded products, or creation of new IP

2. Data Protection: Include when personal data processing is involved in the supply relationship

3. Business Continuity: Important for critical supply relationships or high-value agreements

4. Environmental Compliance: Relevant for supplies involving environmental considerations or sustainability requirements

5. Anti-Bribery and Corruption: Important for international supply relationships or high-value contracts

6. Change Control: Include for complex supply arrangements where formal change processes are needed

7. Supplier Personnel: Required when supplier staff will work on-site or interface directly with the customer

8. Market Testing: Include when periodic price competitiveness reviews are required

9. Volume Commitments: Include when minimum purchase volumes or exclusive supply arrangements are agreed

10. Training and Support: Relevant when the supply includes technical products or complex services

Suggested Schedules

1. Schedule 1 - Goods and Services Specification: Detailed description of goods/services to be supplied

2. Schedule 2 - Pricing Schedule: Detailed pricing information, including any volume discounts or pricing mechanisms

3. Schedule 3 - Service Levels and KPIs: Detailed service level requirements and measurement criteria

4. Schedule 4 - Ordering Procedure: Detailed ordering process including forms and timeframes

5. Schedule 5 - Contract Managers and Key Contacts: List of key personnel and their contact details

6. Schedule 6 - Form of Purchase Order: Template purchase order form

7. Schedule 7 - Reporting Requirements: Details of required reports and reporting frequencies

8. Schedule 8 - Insurance Requirements: Specific insurance types and coverage levels required

9. Appendix A - Approved Subcontractors: List of pre-approved subcontractors if applicable

10. Appendix B - Security Requirements: Any specific security requirements or protocols

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Retail

Technology

Healthcare

Construction

Professional Services

Logistics and Supply Chain

Education

Government and Public Sector

Telecommunications

Financial Services

Energy and Utilities

Mining and Resources

Hospitality

Agriculture

Relevant Teams

Procurement

Legal

Finance

Operations

Supply Chain

Risk and Compliance

Commercial

Vendor Management

Contract Management

Strategic Sourcing

Relevant Roles

Procurement Manager

Supply Chain Manager

Commercial Manager

Contract Manager

Legal Counsel

Chief Financial Officer

Operations Manager

Category Manager

Purchasing Officer

Vendor Manager

Risk Manager

Compliance Officer

General Manager

Chief Operating Officer

Finance Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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