Procurement Success Fee Agreement
Last updated: 16 June 2026
This Agreement sets out how MBC's savings/success-based procurement fee is calculated and charged. It applies where the parties agree to a savings-based engagement.
1. Scope
The categories of spend or sourcing in scope are defined with the client at the start of the engagement. [Confirm categories.]
2. Baseline
The parties agree a clean, documented baseline of current prices/spend for the in-scope categories before MBC begins sourcing.
3. Savings measurement
Savings = the difference between the agreed baseline and the achieved price/cost over the agreed period (e.g. Year-1), on a like-for-like basis, net of any agreed adjustments.
4. Fee
MBC's fee is [10–25%] of verified savings for the agreed period. If no savings are delivered, no success fee is payable. A fixed or minimum fee applies only if expressly agreed. [Confirm percentage and any minimum.]
5. Invoicing & payment
Fees are invoiced as savings are verified, per the agreed schedule. Payment terms: [to confirm]. Taxes (e.g. GST) apply as applicable.
6. Records & verification
The client will provide reasonable access to purchase records needed to verify savings. Both parties keep relevant records for the engagement.
7. Confidentiality
Pricing, baselines and savings data are confidential to the engagement and handled per the Privacy Policy.
8. Term & termination
The engagement term, any exclusivity, and termination rights are as agreed in the proposal. Fees earned on savings delivered before termination remain payable.
9. Limitation of liability
MBC's total liability under a savings engagement is limited to the fees paid for that engagement, to the extent permitted by law.
Contact & governing law
Mukul Business Consultancy, Kolkata, West Bengal, India. Email mukulbizin@gmail.com · WhatsApp +91 97333 29822 · Phone +91 79085 09146. [Legal entity name, GSTIN/CIN to confirm.] This document is governed by the laws of India; the courts at Kolkata, West Bengal have exclusive jurisdiction.