1 / 21

CASBO October 4, 2002

CASBO October 4, 2002. Phyllis Prokop, CPPB Supervisor of Purchases City of Middletown, Connecticut. Contracts- basic overview. For Purchasing Professionals-- Contracts and contract administration is the most difficult but necessary aspect of the job

bjorn
Download Presentation

CASBO October 4, 2002

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CASBOOctober 4, 2002 Phyllis Prokop, CPPB Supervisor of Purchases City of Middletown, Connecticut www.cityofmiddletown.com

  2. Contracts- basic overview • For Purchasing Professionals-- Contracts and contract administration is the most difficult but necessary aspect of the job • A CONTRACT is the written document signifying an agreement between two parties—it details the promises or agreements for which the law has enforceable duties and remedies • CONTRACT ADMINISTRATION- the process by which purchasing ensures that the contract is performed in accordance with the stipulated terms www.cityofmiddletown.com

  3. Contracts- continued • Contracts can be both Express or Implied • EXPRESS CONTRACT—can be written or oral and must have elements of a formal contract • IMPLIED IN FACT CONTRACT – the elements occur through actions/conduct rather than words • PURCHASE ORDER is considered a contract www.cityofmiddletown.com

  4. ESSENTIAL ELEMENTS OF A CONTRACT • CONSIDERATION • OFFER and ACCEPTANCE • OBLIGATION • LEGALITY • COMPETENCY • DEFINITIVENESS www.cityofmiddletown.com

  5. TYPES OF CONTRACTS • CONSTRUCTION • SERVICE • COMMODITY • TERM • TIME AND MATERIALS • CONSULTANTS www.cityofmiddletown.com

  6. UCC ENACTED 1952 • Contracts are regulated by UCC -provide uniformity in laws among states to support interstate commerce • All contracts over $500 - must be in writing • deals only with sale and purchase of goods or sale /purchase of REAL ESTATE— does not apply to services or intangibles •  Duration must be greater than 1 year • Application of reasonableness • Distinguishes between Merchant and Non- Merchant • PAROLE EVIDENCE RULE www.cityofmiddletown.com

  7. MISTAKES IN CONTRACTS • Common law generally provides one remedy for a mistake • --- if mistake is not obvious, the party making the mistake is required to perform the contract if the other party wants it. • The party making the mistake may be relieved of the obligation to perform it under certain conditions • --- party accepting the offer may not enforce it if the offer contained is a mistake that was obvious or should have been obvious or detected. www.cityofmiddletown.com

  8. DUTIES AND OBLIGATIONS OF RECEIVER • Inspection : buyer must inspect goods in a timely fashion , defects must be reported promptly • Buyer has several options • 1.) reject all goods • 2) Accept all goods • 3.) reject non conforming goods • 4.) accept conforming goods • Latent Defects www.cityofmiddletown.com

  9. PAROLE EVIDENCE RULE • court will not admit evidence, either written or oral, of prior understandings or negotiations to vary or contradict the contract’s terms ***Verbal commitments cannot be used to modify or contradict a written contract. www.cityofmiddletown.com

  10. WARRANTIES • IMPLIED WARRANTY—that the goods will meet certain standards, that they will perform as they are intended. • IMPLIED WARRANTY FOR A PARTICULAR PURPOSE—seller knows about the buyers needs , buyer is relying on sellers expertise /knowledge to provide product to fit purpose • Merchant and Non- Merchant– the UCC rule becomes extremely important in this scenario. www.cityofmiddletown.com

  11. BREACH OF CONTRACT • when party fails to perform in accordance with the contracts terms, the breach gives the other party a legal basis to pursue monetary damages • Lawsuits / Mediation • Liquidated Damages Clause: they specify a predetermined dollar amount assessed usually per day of delay • Performance Bonds www.cityofmiddletown.com

  12. CONTRACT CLOSEOUT • Contract closeout requires the following: • Contractual issues must be settled • All changes incorporated into final document • All deliverables items received • All borrowed equipment returned • All classified documents must be returned • Final payment must be made • Contract Administrator must write formal closure document for file www.cityofmiddletown.com

  13. CASBOOctober 4, 2002 Phyllis Prokop, CPPB Supervisor of Purchases City of Middletown, Connecticut www.cityofmiddletown.com

  14. TRENDS IN PURCHASING • AUTOMATION • COMPUTERIZATION • E-COMMERCE • EBULLETIN BOARDS • ONLINE BIDDING www.cityofmiddletown.com

  15. TRENDS IN PURCHASING • RULES MUST BE ENFORCED • LATE BID IS LATE- DO NOT ACCEPT • INCREASED EFFICIENCIES • COST SAVINGS www.cityofmiddletown.com

  16. TRENDS IN PURCHASING • PROCUREMENT CARDS • Accepted widely • Easy to use • Financial controls • Reporting/ Financial integration www.cityofmiddletown.com

  17. TRENDS IN PURCHASING • Misconception-Stumbling Block • Diverse Functions • Responsive to Customers- internal/external • Broad Knowledge www.cityofmiddletown.com

  18. TRENDS IN PURCHASING • Resourceful: DODGE REPORTS / THOMAS REGIONALS • Networking: • PPAC- Public Purchasing Association of CT- 100+members www.cityofmiddletown.com

  19. TRENDS IN PURCHASING • NATIONAL INSTITUTE OF GOVERNMENTAL PURCHASING- (N.I.G.P) http://www.nigp.org/ • A PREMIER TRAINING AND CERTIFICATION ORGANIZATION FOR PUBLIC PURCHASING OFFICIALS • PROVIDES OVERSIGHT FOR PUBLIC PROCUREMENT ETHICS AND POLICY • CONVENES BEST PRACTICES FOR PUBLIC SECTOR PURCHASING • PROVIDES CERTIFICATION FOR PUBLIC PURCHASING AGENCIES www.cityofmiddletown.com

  20. TRENDS IN PURCHASING • State of CT- DAS • CT Gov Center--Orderlink • CRCOG—cooperative contracts (natural gas) • U.S. COMMUNITIES- ECONOMIES OF SCALE- multi-state contracts www.cityofmiddletown.com

  21. KEY CONTACTS • Web Information: • www.nigp.org • www.das.state.ct.us • www.StateGovCenter.com • www.uscommunities.org www.cityofmiddletown.com

More Related