Process Agent for Procurement Contracts

Why is a process agent needed for procurement contracts?

A UK contracting party will insist on appointing a process agent in the event they need to serve legal papers. If a process agent were not appointed the UK company would need to serve papers in your jurisdiction which would be more costly, timely and complex.

Take for instance in the case of Cargill International Trading PTE Ltd v Uttam Galva Steels Ltd. Following a dispute Cargill relied on serving a UK process agent. The judge noted that had they relied on the alternative of serving papers in India it could typically take 8 months (and often considerably longer).

What does a procurement process agent clause look like?

A process agent clause in a contract will typically contain the following elements:

• Outline the responsibility of the overseas firm to appoint a process agent.
• Confirm what happens when process is served to the process agent.
• Outline the expectations for what happens if the appointed process agent is no longer able to act.

Here’s an example of a typical process agent clause seen from a British engine manufacturer:

29.2. If the Supplier is based outside the UK it will provide the name and contact details of its process agent for service of process in any proceedings before the English courts. If any person appointed as process agent is unable for any reason to act as agent for service of process, the Supplier must immediately appoint another agent and notify [us of] the details of such agent. The Supplier agrees that failure by a process agent to notify it of any process will not invalidate the relevant proceedings. This clause does not affect any other method of service allowed by law.

What to consider when appointing a process agent for procurement contracts?

In our experience, the most important things to consider when appointing a process agent for procurement contracts is:

• Group appointers – in these types of contracts it’s common for there to be multiple companies within a group structure to require a process agent. Some process agents will offer a discount for group appointers.
• Multiple documents or agreements – As well as multiple groups, it’s common for there to be multiple agreements as part of a single deal. Again, some providers will not charge per document whereas some will charge per document, per year. This can soon add up.
• Global appointments – if the appointing firm is planning on entering several contracts in the UK it may be better to put in place a global process agent agreement that will cover all their contracts for a fixed annual fee.

Elemental’s approach to process agent charges:

Our process agent service fees are refreshingly straightforward. We charge one one-off setup fee and then a fixed fee for every year:

• You can find out how much a process agent with Elemental is going to cost by using our process agent fee calculator. We have also written a further guide on Process Agent fees.
• We do not charge per agreement when entered into at the same time and form part of the same transaction.
• We offer a 50% discount for additional group appointers (with the same address).
• We can offer a global process agent appointment service for all your requirements.

Elemental is a specialist corporate services firm. We’ve helped clients from over 100 countries here in the UK. We offer a professional process agent service without hidden extras. If you have any questions about process agent requirements for your procurement contract, please get in touch. Or, you can visit our process agent service page to get an instant quote and complete a process agent appointment online.