Whilst it's the way that a lot more suppliers seem to be going, if you think about this in with your procurement hat on - and that is what's going to happen at the end of 3-5 years - it's tough to see you doing anything but just rolling this over (and over and over again) as someone else has all of your data on their server.
At the risk of being awfully contentious, my own experience is that in a lot of circumstances, there's little consideration of whole of life costs - especially with that thinking about what's to happen in 3-5 years. Right now, many of these purchases done right now are flying under the radar of procurement teams because they're below procurement limits or just being called operational expenditure within business delegated authorities.
That said, one of the benefits that I've also seen is that upgrades happen automatically on the server of the host without the business having to create teams to do this, especially where there was a major upgrade - which were previously a big financial impact on many businesses.
Hope that this is useful.
Bahrain National Gas Co. (B.S.C)
I suppose this depends on what you mean by a Contract Agreement. If you have a Master Services Agreement in place that contains agreed legal terms and conditions, signed off by both parties, then the RFP process could proceed. However, depending on the types of good or service being sought, i.e a major construction project, then the terms and conditions within the Master Services Agreement may not be appropriate, its always best to consult a legal professional before you issue the RFP to ensure all legal provisions are either sufficient or addressed.
• AJA Global Consultancy Services, LLC
Pallab, I may be missing something from your description of the issue; or what you describe as "execute a Contract Agreement (signed by both parties)..." could be the reason of my confusion.
It is not clear to me if your organization represents the buyer or purchaser side (who is the party making pressure to move ahead). But anyway, the practice you are describing seems to me as the typical recipe for potential claims. As Gary says in his reply: seek in-house legal advice.
Sorry I can not be of much help.
• Bahrain National Gas Co. (B.S.C)
What I mean by the Contract Agreement is the Form of Agreement which is generally the first covering pages of any standard Contact wherein it is stated..
This Agreement is entered into on the xth day of ... by and between ......
followed by the list of documents that together constitute the Contract and showing the precedence of documents in the event of conflict between the documents.
A blank Form of Agreement is provided as a format along with the tender documents which is finally filled up and signed by us and the successful tenderer. The format when filled up and signed, we call it the 'Contract Agreement'. This document is used for tenders (for services, construction works, etc.) having reasonably high estimates where full tender package is used to invite bids.
On the other hand, for small supply orders ( spare parts, plant consumables, etc.) a system generated RFP document is used to invite bids and eventually a system generated PO is issued referring to RFP document and supplier's quotation.
Now let me rephrase my question as - is there any thumb rule ( example- bid estimate) that could be followed as a criterion to determine
• when a full fledged tender document to be used to invite bids and finally a Form of Agreement is signed off to conclude a Contract, and
• when a simple RFP document to be used to invite bids and and just a system generated Purchase Order is issued to the winning bidder, and no Contract Agreement is executed.
• Omaha Public Power District
I think blockchain will have a major impact in the future of and will transform the legal industry. And I try to stay informed ('try' is the magic word) -- check out this link as well: www.legaler.com/
Blockchain approaches are really bleeding edge at this point, and only for the very best informed. We recently did a workshop at MIT on AI, Blockchains and the Future of Law. Happy to make introductions if you are seriously considering this. But in the meantime- suggest you might look at the work we are doing with the IACCM on contract standards that are compatible with a blockchain approach - or not. github.com/IACCM and a "Wise Contracts" paper with Helena Haapio - papers.ssrn.com/sol3/papers.cfm.
Also - the AccordProject.org is very active in this field and in the IACCM.
Hi Andrew, aeternity is a blockchain implementation with some limited contracting features. Basically the ecosystems support smart contracts on their blockchain but with many limitations in terms of compliance. Our approach is a bit different, we offer an end to end contract management system in the blockchain supporting eprocurement and supply chains. Have a look here www.trakti.com and let me know if you want to know more. PS we are production ready ;-)
Public Works Advisory, NSW Department...
I'm not sure I can reflect on any experience that directly relates. However, I would like to comment and also hear from you an update as to this situation.
Unless the terms and conditions of the contract specifically indemnify the other party [that produced the documentation] in relation to errors and omissions in its own documentation, then you have grounds to negotiate a variation for the higher price of the preferred product. Depending on the scale of the change, perhaps it's best to absorb the cost and seek savings elsewhere...
David - you face a challenge experienced by many in the Aerospace/Defence sector, as well as the Engineering/Construction, Oil and Gas, Pharmaceutical and other sectors. All of those sectors have utilized the training content provided by IACCM, as it represents leading and innovative practices in this domain.
I'd be interested to know more about how you define the role. I'm assuming - but perhaps wrongly - that the focus is post-award, but is it then dealing largely with contractvmanagement, or more broadly with performance management? To what extent is this a combined project and contract management responsibility?
• Abu Dhabi National Oil Company (ADNOC)
An organisation like yours has what it takes to develop sub-contract programme managers internally due to the criticality of the service you provide. It was not clear if you tried to employ(source) the sub-contract managers or you tried outsourcing sub-contract management.
You would consider it great to employ these managers as staff for long-term rolling programmes rather contractor employees; except you need them for short-term tasks. You will need individuals with experience project, programme, commercial and contract excellence
You would prefer to contact each of the professional bodies you mentioned directly to make your enquiry. However, from my experience with CIPS and IACCM, both bodies are excellent in their area of specialisation. You won't go wrong partnering with them. APM and RICS would also have a specific focus that you would best explore reaching out to them.
My view is that the challenge in the UK rests with the way in which these professions are segregated rather than blended and then the fixation on qualifications rather than real world experience. Programme manager are marketable at one rate and contract managers at a lower rate so the temptation is from a career viewpoint is to market yourself at the higher rate profession. Hybrid roles tend to be thus rarer and need a premium to attract the right talent. Sadly recruitment companies in the UK focus on the volume for standard based roles and do not flex to the individual requirement. Often the best approach is use of LinkedIn or network sites for ready made talent. Otherwise growing your own and investing in your team is a great way to go but will take time and they will nurturing through the process. I hope that this helps.
The governance and framework for outsourcing service on-boarding and general service contractor on-boarding would be largely applicable here. The key here is that the SOW's, SLA's and KPI's are clear and complete - but that holds true in any services contract. From what I have seen, SIAM principles are highly relevant here.
Governance framework for vendor management should be standard, however, level of engagement to manage a vendor varies depending on type of contract and value of spend.
I would recommend at minimum to onboard vendor onto these governance framework discipline:
Risk and Compliance