Validating specifications: A contract-based approach

The role of contracts in validating specifications has been neglected in re search, as they are thought of as commercial and legal documents with littl e value as far as validation is concerned. The term "validate" does not mea n preapproval before production but acceptance of performance of the suppli er (through validation parameters contained in a contract) to deliver to sp ecification during the development/production of the final product. This pa per demonstrates the role of contracts in validating specifications by prop osing the elements of a contract that can aid validation. Two in-depth case studies were conducted in one auto and one aircraft original-equipment man ufacturing located in Europe. Data were collected through participant obser vation, interviews, and analysis of archival sources. A strategic contract structure encompassing two categories of elements, the validation criteria for entry and the validation criteria for remaining in the business, is pro posed. The strategic contract structure can aid managers involved in the sp ecification process to structure development projects with suppliers. This will help attain planned goals.