New GMSA framework

Global non-audit clients are increasingly contracting with their professional services providers through centralized and professionalized procurement departments. As a result, they seek from us global arrangements that ensure consistent terms and conditions for engagements – no matter where they are signed and including uniform liability caps.

Many of you have indicated that our inability to come to the table with such a set of global agreements between our member firms hinders our effectiveness in the market. We risk total exclusion from certain engagements or hindrance from developing other accounts further.

You’ve also highlighted that when you have attempted to negotiate on a regional or global level, local procurement departments can be hard negotiators and client relationships can become strained as a result. Internally, protracted negotiation around an acceptable level of liability cap on a member firm by member firm basis may cause delay in responding to client requests and their sign-up to a Global Master Services Agreement (GMSA).

It’s imperative that we enable you to drive growth on your account. And, after approval by the global board, a framework is now available for new GMSA for non-audit clients signed after 1 January 2014.

This solution is designed to protect member firms from the potential one-off impact of a high, centrally agreed liability cap imposed by our global clients and to counter the reluctance for those member firms to sign-up to the global agreement.

To take advantage of this new initiative and fully understand its applicability for any new global contract, contact Markus Fabel, Head of the GMSA team, early on in the process. His team will provide guidance, assistance and outline in detail the eligibility requirements, which will be based on the growth potential of the global accounts.

Contact Markus Fabel.