Organizations often confuse “someone approved it” with “the approval is documented.” These are related but separate conditions.
Approval answers authority
Approval asks whether the appropriate person agreed to the rate, scope or renewal. That decision might occur by telephone, in a meeting or through an operational conversation.
Documentation answers reconstructability
Documentation asks whether a future reviewer can determine what changed, why, when, under whose authority and for which locations or services.
Worked example
A location manager receives a call advising of a 3% rate increase and verbally agrees. The new rate is accurate and consistently billed. Months later, the only evidence is memory. The decision may be valid, but the record is weak.
Minimum change record
- Vendor and affected location
- Old and new rate or scope
- Effective date
- Contractual or commercial basis
- Approver
- Supporting notice, email or amendment
Why this matters
People leave, inboxes disappear and responsibilities change hands. A reconstructable record protects both management and the vendor by reducing future uncertainty.
Frequently asked questions
Can verbal approval be valid?
Potentially, depending on authority and policy. The separate issue is whether the decision can later be verified.
What is the simplest improvement?
Retain a short change record with the old and new terms, effective date, approver and supporting communication.
See the relationship, not just the invoice.
SGG reviews contracts, invoices, amendments and recurring service patterns across the organization.
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