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CPA grows, formalizes and matures

Contract Packaging Association (CPA) activity following the annual meeting in February has concentrated on initiatives benefiting members.

Pw 3472 Contract Signing

For those who use contract packaging services, the CPA should be the only packaging partner they will ever need. The association’s primary obligation here is to have response mechanisms that will quickly facilitate an identified need with companies that can fill the need. Two mechanisms are Request for Quote (RFQ) and Find a Contract Packager, both available at www.contractpackaging.org. They can be found on the home page.

A very recent example of a new response mechanism is an effort to develop new form contracts for contract packager members. This is particularly important, as our members are being called on increasingly to buy, specify, recommend, and purchase materials, containers, components, equipment, and other packaging services. The contracts are intended to assist in creating written agreements to assure they address all necessary and desirable subjects in a manner that is fair to both parties, and also is beneficial to the contract packager when possible.

Many members, when they undertake new projects for clients, have either no standard form as a point of reference or have incomplete written agreements. As a result, they often acquiesce to agreements offered by clients, which can contain unfavorable terms for contract packagers. For these reasons, members have expressed a desire to have a tool to enhance their position when negotiating. This tool can result in more beneficial financial terms and clarified liability, and also limit consequences of breach or other unexpected events. It is believed these forms will save time in contract discussions and enhance predictability in ongoing business relationships.

Because of the variety of business types represented by the CPA membership, different forms will be required. Moreover, each form is expected to contain some clauses in variant forms so members can choose the most appropriate variant to cover a particular subject matter. The CPA’s new Contracts Committee is fully functional and will interface with both full membership and the board.

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