Contract management in public sector

MUHAMMAD SHAHZAD AKBAR Manager| DISTRIBUTION COMPANY Islamabad, Pakistan

We have a public sector project with supply and services for a power plant control system.
Method: ICB
Nature of material: proprietary
Payment terms : 90% cost of material on shipping 10% cost of material on receipt and inspection.
Seperate cost for work services payable on execution and SAT.
10% performance bond is in hand.
Firm shipped and recieved 90% cost of material and default.
How we should handle this case as the installation of system is necessary.
No other can do this job, free lancing and other options are risky and may jeopardize the production.
What are flaws in such type of contract and what type of contract is most suitable for this case.

Posted: May 12, 2019 8:01 AM

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Stéphane Parent Self Employed / Semi-retired| Leader Maker Prince Edward Island, Canada

It sounds like you don't have enough knowledge and experience to properly manage the work. That rules out a time and material staff augmentation contract You would be better served by outsourcing the work and its management in a fixed scope/fixed price contract. This would reduce your risks. If there is only one supplier who can perform the installation, you should have a case to sole-source the contract.

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1 reply by MUHAMMAD SHAHZAD AKBAR

May 13, 2019 2:26 AM

MUHAMMAD SHAHZAD AKBAR

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Thank you for comments

Posted: May 12, 2019 8:42 PM

MUHAMMAD SHAHZAD AKBAR Manager| DISTRIBUTION COMPANY Islamabad, Pakistan

May 12, 2019 8:42 PM

Replying to Stéphane Parent

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Thank you for comments

Posted: May 13, 2019 2:26 AM

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Contract management in public sector

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