Can changes be made to a price agreement contract at any time?

A price agreement contract is a formal arrangement between a buyer and a supplier where the price and terms are agreed upon for a defined period. Typically, once a Purchase Order (PO) is issued referencing this contract, it signifies that the buyer has committed to the terms outlined, thus locking in the price and conditions specified.

Making changes to a price agreement contract after a PO is issued is generally not permitted because it could lead to inconsistencies and disputes regarding obligations and responsibilities under the contract. Therefore, once a PO is created that references the price agreement, the terms and conditions become binding for that transaction, and any changes would typically require renegotiation or amendment of either the PO or the underlying contract.

In many procurement systems, including Maximo, integrity and clarity in contractual relationships are crucial to ensuring that both parties have a mutual understanding of the terms. Consequently, alterations can only be made before the issuance of a PO, ensuring that all transactions are conducted under the agreed terms without ambiguity.