Procurement Management
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Performance: secures the performance and fulfillment of all the undertakings, terms and conditions of the contract. (The penal amount could be as much as 100% of the contract price such as in construction projects)
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Payment: secures the payment of subcontractors, laborers, and materialmen by the prime contractor. Additionally, the PM may want to include a contract clause requiring the prime contractor to secure payment bonds from any subcontractor on the project for the subcontractor's suppliers of labor and material.
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Under certain circumstances, fidelity and patent infringement bonds may be required.
The Miller Act requires both performance and payment bonds on all but minor construction projects in which the U.S. government is a party to the contract.
Breaches: •
Breach of contract: failure to perform a contractual obligation.
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The measure of the damages for a breach is the amount of loss the injured party has sustained.
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Materials breach of contract: The non-faulted party is discharged from any furthur obligations under the contract. The breach is so serious that it also deprives the non-faulting party the expected benefits of the bargain.
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Time: Should no time for performance be stated or implied in the contract, the performance must be completed within a reasonable amount of time. However, if time is critical, the contract should explicitly state "time is of the essence".
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Time is of the essence: when explicitly stated within the contract, failure to perform within the allotted time will constitute a materials breach of contract and the buyer will not be required to accept late performance.
Negotiation Stages of Negotiation: 1. Protocol: Introductions are made, and the negotiators get to know each other.
The atmosphere for the rest of the negotiations is determined in this stage. 2. Probing: The negotiators begin the search process. Each party identifies issues
of concern. Strengths and weaknesses are identified and possible areas of interest. 3. Scratch Bargaining: This is the essence of the meeting. Actual bargaining
occurs and concessions are made. Points of concession are identified. 4. Closure: The two positions are summed up and final concessions are reached.
The agreements are summarized and documented. Arch: Hesham M Samir Email:archmesho@yahoo.com
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