The objective of pre-approvals is to establish an audit trail of contractors who would apply for an exception and the supervisors who would approve them. Procurement intends to modify each supplier’s agreement to stipulate that the company will not be obligated to pay for charges outside of the signed agreement without a pre-approval.
The following are scenario examples.
The contractor may be asked to work extra hours at a premium rate not allowed in the agreement.
The contractor may be granted equipment mobilization or refueling charges not in the contract.
The contractor may out-source work to a sub-contractor at a non-contractual billable rate.