Reading value bands before you fill the approval form
How mismatched commercial schedules against internal value bands create avoidable revise-and-resubmit loops.
Internal approval rules in Korean corporates often split authority by contract value, term length, and counterparty type. The application form may ask for a single “total contract value” field while the schedule spreads fees across years, options, and variable volumes.
Why the mismatch happens
Sponsors quote the first-year fee in the header because that is what budget holders discuss. The schedule, written later by a different colleague, includes renewal options that push the pack into a higher band. The approval clerk reads both and returns the file for the correct route.
What we check in a full audit
- Whether the header value equals the schedule total using the same currency and tax treatment your policy requires
- Whether option years are included or excluded under the written rule for that band
- Whether counterparty category (affiliate, public body, new vendor) triggers a parallel path that the form did not select
A practical habit
Before locking the form, ask finance which definition of “value” the policy uses for this contract type. Write that definition in the sponsor cover note. It will not replace a correct number, but it reduces ambiguity when two readers interpret the schedule differently.
If your sitting date is close, commission the audit early enough that a band correction can still move to the higher committee without losing a month.