Contract Principle
Contract Principles:
Kirby (1988) defined contract law in procurement as justification wrote or signed to legally bind both parties. Contract law in procurement involves preparing, confirming, approving a concise and complete contractual document that protects the interest of the buyer & supplier in a commercial business environment with liabilities, indemnities, insurances, and warranties. This contract arrangement must follow legislative, environmental, and legal policies that are enforceable by the court of law.
Importance of Contract Law in Procurement:
WorldBank Procurement Regulations for IPF borrower states that contract management enables all parties meet obligations, the value of money, effective contract management, contract management activities such as the requirement to develop a contract management plan (CMP) and risk mitigation. Contract management in procurement also ensures resources, roles/specifications, and due processes are followed by both parties.
Caysh Charity Organizations contracts perspectives:
Caysh is a charitable organization funded by Croydon Council to oversee the provision of shelter & reintegration of homeless youths and disabilities in the society. Having worked with this organization for 5years, I discovered how Croydon Partner with Caysh to supports housing, employment, and social community involvement. Croydon Council has rehabilitation framework agreements that include medical assistance to in-patient (disabled) and home security projects tendered to Caysh as a long-term contract with conditions to provide support to the impaired in the society.
Before Caysh entered into a legal agreement with Croydon, they reviewed the mandatory & discretionary exclusions and understood the procurement document with information explicitly supplied by Croydon. They also applied officially, complete full qualifications & meet supplier’s criteria used to access their ability to cover service specification required. Croydon council holds premier suppliers program (PSP) utilized to analyses purchase to pay process to improve ordering, invoice management & payment processes. Croydon as a buyer has subcontracting agreement to ensure call-off contracts, Consortia arrangement that follows European Acquired Rights Directives 2001/23, and Undertaking Regulations (2006).
Croydon used regulation 24 of the public contracts regulations (2015) to resolve conflicts of interest and seal of performance bond undertaking, deed of guarantee & indemnity. Caysh as a Supplier must submit a tender response document, signed and sealed; which Croydon will either accept or reject due to failure to meet service requirements, prices & time, lack of satisfactory terms, or warranties mentioned.
The contract procurement process includes tenders & contract regulations, Commission framework & social value policy, standard terms & conditions and provision of service, purchase order terms & conditions, standard terms/ signing of the document, and premier supplier’s program.
Croydon condition of purchase includes the details of the authorized supplier, contract order description, Goods & order, supplier’s service description, Application of terms & conditions, quality and defects, Warranties, indemnity, Delivery/Performance & Risk/Property condition, Price/Charge & Payment & confidentiality/intellectual property conditions, Council property & termination conditions, Remedies, Force Majeure and general inclusions to the conditions. Croydon has the right to review supplier’s service conditions to ensure their bargaining power and interest; while Caysh review the purchase condition and seek for adjustment where necessary.
The contract arrangement shows the charge, changes, control procedure, commencement date, data breach control policy & protection laws, disaster recovery plan, dispute resolution procedure, Exit management plan, FOIA & GDPR, guarantee & health & safety policy, Performance bonding, remediation notice, Termination procedure, and Service failure damage claims. It also has service levels, Anti-Slavery policy, assets of both parties, authorized signed notification for Caysh to represent Croydon Council as partnership using best industry practice that is against bribery Act (2010).
Reference:
Kirby P in Biotechnology Australia Pty Ltd v Pace (1988) 15 NSWLR 130 at 132 when his Honour said that ‘the law of contract ... underpins the economy’.
The World Bank Procurement Framework (2018), including Standard Procurement Documents (SPDs), Guidance, briefing, training, and e-learning materials see www.worldbank.org/procurement
Links:
http://pubdocs.worldbank.org/en/-/CONTRACT-MANAGEMENT-GUIDANCE-September-19-2018-Final.pdf
https://www.croydon.gov.uk/sites/default/files/articles/downloads/conditionspurchase.pdf
https://www.croydon.gov.uk/business/tenders/htcss
https://www.croydon.gov.uk/sites/default/files/articles/downloads/%28Final%29%202018%20Provision%20of%20Services%20Conditions%20of%20Contract%20-%20Long%20Form%20%28tender%29.docx
https://www.croydon.gov.uk/sites/default/files/articles/downloads/Instructions%20for%20tendering%20%28Open%29%20June%202018.doc
https://www.croydon.gov.uk/business/the-premier-supplier-programme-psp/the-premier-supplier-programme-psp
Reflection:
The contract agreement between Croydon Council and Caysh has essentially helped disabled youths and homeless this coronavirus season, with additional social value policy to support the homeless with housing, food, and medical assistance. Caysh for years has maintained the standard performance checklist, followed the benchmarked guidelines in the contract, meet the described partnership charter, discussed Croydon community Agenda to mitigate risk, change, and control process. The significant success of Caysh and Croydon Council contract centers on achieving the value for the money provided, offering the needed solutions ongoing, realizing the intended social value benefits, following the performance compliance, making continuous improvement, handling risk adequately and adhering to the statutory obligations.
Reference Links:
https://www.croydon.gov.uk/sites/default/files/Tenders%20and%20Contracts%20Regulations%20-%20July%202019.pdf
https://www.croydon.gov.uk/sites/default/files/articles/downloads/handbook.pdf