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Due Diligence Checklist

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225 views2 pages

Due Diligence Checklist

Uploaded by

nhzaidi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Procurement – driving better value for money

Checklist – Due Diligence

User instructions
Adapt this checklist to suit the complexity of your procurement activity.

Options Suggested checks

Referee checks  What’s your relationship with the supplier?


(referees must be  What types of goods or services have you purchased?
relevant to the  Is the supplier currently providing you with the goods or services?
goods/services you’re
purchasing, and recent or  Has the supplier’s performance been:
current customers) o on time?
o to the required specifications?
o within budget?

 How would you rate the quality of the goods or services delivered?
 How accurate is/was the supplier’s reporting and invoicing?
 Where has the supplier performed well? What could it improve?
 How much contract management does/did the supplier require?
 Have there been any issues? If yes, how well were they handled?
 Have there been any concerns around honesty or trustworthiness?
 Would you use this supplier again?

Qualifications  Does the supplier legitimately hold the academic qualifications or


professional status it claims in its CV?

 Has the supplier held the job positions and completed the work experience it
claims in its CV?
Analysis of ownership  Check that the business is a legal entity. What sort?
 Check who owns the business. Is there a parent company?
 How long has it been in business?
 Is it New Zealand based, offshore or part of a multinational? 
 How many staff does it have in total? How many staff will deliver against this
contract?
 Check there are no actual, potential or perceived conflicts of interest.

Analysis of delivery  Undertake a comprehensive check of the supplier’s delivery. 


 Can the supplier provide reliable referees for similar work? (They must be
recent.)
 Do the supplier’s staff have the capacity, capability and expertise to deliver?
 Who is the contract manager/account manager? Ask for their CV.
 Does the supplier have systems and processes to ensure delivery?
 What are the supplier’s systems and processes for managing contract
implementation/service-level agreements?
 What processes and methodology does it use to check and maintain quality?
 How is reporting managed – by whom? How are reports checked?
 What risk management analysis has been done on the contract?
 How comprehensive and effective is the risk management plan?
 Does the supplier have a licence for all copyright in the deliverables?
 How are confidential records stored?
 What processes does the supplier use to stimulate innovation in delivery?

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Procurement – driving better value for money

Options Suggested checks

 How does the supplier handle exceptions or variations?


Analysis of delivery (cont)  Does the supplier comply with New Zealand product standards (if
appropriate)?
 Check the staff policies on code of conduct and confidential information.
 If appropriate, can the supplier verify sustainably sourced goods?
 Is there any industrial relations history or current issue/s?

Analysis of finances  Check the supplier’s current and future financial viability (for the expected
contract duration).
 View copies of the provider’s annual reports for the past three years.
 View a copy of the last independently audited accounts. Check profitability
and liquidity.
 Undertake a credit check e.g. with Baycorp/Veda Advantage. 
 Check evidence of insurance (if required).
 Assess any material risks e.g. pending litigation.
 Check whether there are any current or pending issues with Inland Revenue.
Ask the supplier to confirm.
 Are there any bank or third-party guarantees?

Site visit – supplier  Visit the supplier’s premises – check operational conditions.
 Witness a demonstration of its capabilities.

 Talk to key staff. What works? Where are any problems?
 Check regulatory compliance e.g. OSH certificates and procedures.

Site visits – customers  Have the customers purchased the same types of goods or services that you
are intending to purchase?
 Has the supplier’s performance been:
- on time?
- to the required specifications?

- within budget?
 Verify the quality of the goods or services delivered.
 Where has the supplier performed well? What could it improve?
 Have there been any issues? If yes, how well were they handled?
 Would you use the supplier again?
Research  Do a media check on the supplier and its business.
 Check its reputation for quality goods or services.
 Check its reputation for innovation. 
 Check if its products have been independently tested.
 Has the supplier won any industry/professional awards?
Security checks  Does the supplier have any convictions that could compromise the contract?
 Are there any pending criminal cases that could compromise the contract? 
 Can the supplier obtain and maintain security clearance (if required)?

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