Procurement and Contracting PJM400: Critical Thinking Colorado State University-Global Campus Professor: Clara Spenny October 01, 2015 Procurement and Contracting Getting into a contract is systematic since there are certain steps that ought to be followed before any contract can be complete and legally binding (Lando, 2003). Contract management is the segment of the procurement cycle in which a supplier delivers the required goods, or services in accordance with a department’s stipulations and Terms and Conditions of Contract. The buyer and supplier’s approach to managing their relationship is critically important to certifying successful contract delivery and best value for money for the taxpayer. …show more content…
On the one hand, there is a retailer named John who needs to obtain supplies for sale, not necessarily from Care One Medical Services because there are other businesses that sell medical supplies to retailers. In an effort to improve business, Care One Medical Services approaches John. The sales person talks to John and explains in detail all the services offered by the company and the processes involved in the purchase of the supplies. Consequently, Care One Medical Services makes a written offer to sell John medical supplies at $15 to $20 per prescription. John replies by stating that he accepts the offer on conditions that the medical supplies are not expired or counterfeit. Here, John’s response is an acceptance that is valid. It is a conditional acceptance that spells out an implied term of the company’s offer (Government of Canada, 2014). After understanding the terms and conditions of the company’s contracts, both John and the company’s sales person come to a mutual agreement of an offer and acceptance. In this case, the company is the offeror and John is the offeree (DeWitt and Moser, 2007). The offer is the manifestation of willingness by Care One Medical Services to enter a bargain. The company’s sales person makes an offer by declaring that after the negotiations, the company won’t take less than the negotiated amount. The offer made generates acceptance
A basic definition for the procurement is “the way the building is realised” and “involves assembling and organising the skills and services of a team of construction professionals”. (the Construction Round Table, 1995). More precisely, the construction industry describes procurement as “a system that establishes the roles and relationships which make up a project organisation”; hence the overall organisation and communication structure for the management, administration and control of a project is established by the procurement system. (D.C.H Coles, 2010)
Billy communicates his acceptance directly in response to Choy’s offer. To ensure a contract, acceptance must be unqualified, clear and certain and communicated to the offeror. In this case, these requirements are satisfied and Billy clearly expresses his acceptance, temporarily giving up his study.
An acceptance of an offer is “ a manifestation of assent to the terms thereof made by the offeree in a manner invited or required by the offer.
In this assignment I will be writing a formal report that will explain a typical procurement process, I will outline a variety of methods of supplier reimbursement and contract relationships; I will also outline the pros and cons of each contract type. As well as this, I will explain a typical supplier selection process through the use of Carters 10 C’s and a typical selection process model.
Acceptance-This basically means that the terms of the offer have been clearly understood and agreed to through consent and assent and at no time will the terms be changed.
Acceptance. This basically means that the terms of the offer have been clearly understood and agreed to through consent
This is a clear expression of a party accepting agreement to the terms of the offer.
The offer and acceptance model is flawed- only an agreement is necessary. In order to fully comprehend this statement, we must first establish what constitutes and offer and what constitutes acceptance. “An offer is a statement by one party of willingness to enter into a contract on stated terms, provided that these terms are, in turn, accepted by the party to whom the offer is addressed”. Acceptance is “…an unqualified expression of ascent to the terms proposed by the offeror”. The “Offer and acceptance model” is based on the court’s adopt the “mirror image” rule of contractual formation. Applying the definitions stated above, we can take this to mean that there must be a clear and unequivocal offer which must be matched by an equally
3. An offer. An offer occurs when a party communicates the intention of doing something if the other party does another specific thing. Either the buyer or seller can initiate an offer so it could occur when you approach a cranberry cooperative with an
Centralised contract management to measure supplier performance with the costs for professional contract management staff shared across the Network
Almost all purchasing decisions include factors such as delivery and handling, marginal benefit, and price fluctuations. Procurement generally involves making buying decisions under conditions of scarcity. If good data is available, it is good practice to make use of economic analysis methods such as cost-benefit analysis or cost-utility analysis.
Capable of acceptance by the offeree, offeree is the person receiving the offer. A valid agreement must be constituted by Offer and Acceptance. For the responses to an offer, everyone can accept
This essay will examine how to best prepare a contract administration plan. The contract administration plan will examine different methods used in preparing a plan. This essay will explain how important it is to have technical and other support of personnel, the importance of surveillance, and to determine what functions need to be delegated, identify qualified personnel as well as authorized, it is necessary for the Contracting officer to be represented in administering contract requirements. Also there will be a discussion on what is determined
Competition is fierce in today’s world and a business must work smarter versus harder. Many big name chain stores have achieved success but none like that of Wal-Mart. The following is a review of the Wal-Mart customer and his or her expectations of its procurement process. An additional review of how these expectations affect Wal-Mart’s strategies, policies, and procedures at both the domestic and global level is also included.
Procurement is also referred to as the sourcing and purchasing of goods and services for commercial purposes. Every decision unit, be it a farmer or a firm, sets procurement policies that govern its choice of suppliers, products, and the methods and procedures of buying. Depending upon the size of the decision unit and the complexity and level of formality of the agribusiness concern, procurement practices are evolved in various segments.