Contract and Procurement Management

1.a) In the above scenario, Vasal can refuse to do sell the car as he had not heard of the acceptance from Navid. Navid directly went on to proceed with the payment without giving any acceptance.

1.b) The law of contract works on the principles of offer, acceptance, and payment. Some conditions prescribe for revocation of the offer. The person making the offer has got an option to revoke the same till the time it is not expressly accepted. Therefore, in the above scenario, acceptance and payment were quite fast and there was no formal acceptance before and Vasal can rightfully refuse to sell the car (Eisenberg, 2014).

1.c) I will first detail out the scope of the contract. The next step would be to describe the purpose and objectives of the tender concerning the environment it will be implemented in. Lastly, I will roll out the deliverables and the delivery times of the same. I will then open a three days window to entertain queries and clarifications that are needed by the people wanting to fill the tender. Once this process ends, there will be three days bidding process. The top 5 bidders will be called upon to present their bids further and then the suitable bidder will be selected after consideration of all the elements (Zhang et al., 2017)

1.d) This order can be easily done through a change order to the original contract as it will be easier to derive the goods from one place only. However, if there is a need to change the look then a separate contract can be tendered by circulating advertisements for the bids of the same. However, it is ideal to circulate a change order and give the additional list of items to the same bidder who was awarded the contract (Khalifa and Mahamid, 2019).

2.a) Yes, I will accept the change request after analyzing whether or not there is a scope in the contract to alter the work order and the extent of the same and then I will analyze if I will still be making a profit from the change order (Khanzadi et al., 2018).

2.b) The steps that I will take for a valid claim are-

  • I will see the contract and look for the extent of change orders that can be received
  • I will then evaluate the losses I will incur due to this change order
  • I will then discuss the matter with my costing and evaluation team
  • I will then detail out the effects that the change orders have on the work already finished
  • I will then talk to the authorities related to the claim related to my existing and past work done

3.a) I will ask for fair compensation for-

1. The loss of time of the labor where they were on the roll but could not work due to shortage of the material.

2. The losses incurred to obtain the material from the different supplier due to shortage of time

3. The various bills that have accrued such as electricity bill, etc, during the time there was no work due to regulations

4. Loss of perishable material that was caused due to no timely usage of the same

5. Loss of machinery

3.b) There is clear and convincing evidence that proves the case beyond a reasonable doubt that all the losses have been incurred due to the regulations imposed by the government and there was no time allotted to prepare for an alternative course of action (Kim, 2017). This has caused great losses, delays in material supply, and much more.

3.c) I will take the following steps

  • I will prepare a thorough list of all the items of the claim and stipulate a final amount that needs to be claimed.
  • Thereafter I will scrutinize the tender contract and see what kind of dispute resolution method has been agreed upon.
  • I will then invoke that clause and try to get a resolution through the recitals of the contract
  • Lastly, I will resort to litigation if my claims are not satisfied to the extent that they should be.

4.a) An ethical procurement can be ensured in the following-

  • By listing out the products that are needed
  • By scrutinizing the ethical methods to source them
  • By looking at the ASQC standards for the products needed
  • By scrutinizing the suppliers who can supply the same with quality certificates and ASQC compliance (Israel et al., 2019)

4.b) I will assess the BATNA (best alternative to a negotiated agreement) and ZOPA (zone of possible agreement) range of the CQU in advance to analyze the scope I have while negotiating the contract (Pinkley et al., 2017). I will take a thorough look at the competitors and will see the kind of products and services they would be offering. I will offer a zero contact customer service which is important at the time of this pandemic. All the things that will need support will be provided with the help of a remote help service system that will be prompt and swift in query resolution.

4.c) I position myself as the party with an upper hand due to the following reasons-

Firstly the availability of all the products under one roof

Secondly, prompt remote support

Thirdly, quality products with warranty certificates and ASQC compliance

Schematic Sketch

5.a) The four benefits of outsourcing here would be-

  • No infrastructural costs would be involved as more hiring would need an infrastructural upgrade
  • More efficiency as there will be access to the resources of your choice
  • Cost-effective as the project can be outsourced to third world countries where labor rates are less
  • Client retention by delivering the project on time (Mikko and Juntunen, 2018)

Four risks

  • Client poaching in case too many details are revealed
  • Communication lapse between the client, the company, and the company that is doing the work
  • There will be no organizational trust
  • Higher transactional costs than expected (Lins et al, 2019)

5.b.1) Yes it would be appropriate for the firm's A, B, and C, acting independently, to provide the client with a statement of the estimated charges because no possible opportunity to expand the business should be missed for futile reasons of non-exclusivity of the interview request. It is a common practice to engage in price comparisons (Orlando, 2019).

5.b.2) Yes, price comparisons are ethical and firm A was right in participating further. Price comparison is the right of the paying party, it is up to the other party to assess whether they wish to continue after knowing this (Hamenda, 2018). It is but obvious that businesses will try to achieve more at lesser costs.

References for Contract and Procurement Management

Eisenberg, M.A., 2014. The Revocation of Offers. Wis. L. Rev., p.271.



Khalifa, W.M.A. and Mahamid, I., 2019. Causes of Change Orders in Construction Projects. Engineering, Technology & Applied Science Research, 9(6), pp.4956-4961.

Khanzadi, M., Nasirzadeh, F. and Dashti, M.S., 2018. Fuzzy cognitive map approach to analyze causes of change orders in construction projects. Journal of Construction Engineering and Management, 144(2), p.04017111.

Kim, D., 2017. New business opportunities through government tenders. Africa Renewal, 30(3), pp.36-37.

Lins, M.I.A., da Silva Duda, J. and da Cunha, M.X.C., 2019, May. Motivations, Risks and Benefits in Outsourcing Information Systems: Confronting the Visions of Providers and Contractors in Maceió. In Proceedings of the XV Brazilian Symposium on Information Systems (pp. 1-8).

Mikko, V. and Juntunen, J., 2018. Outsourcing accounting functions-measuring benefits, impact on capabilities and firm performance.

Orlando, G., 2019. Practicing the Just Price: Fair Trade and the Limits of Ethical Consumption in the Global North', The Politics and Ethics of the Just Price (Research in Economic Anthropology, Volume 39).

Pinkley, R.L., Conlon, D.E., Sawyer, J.E., Sleesman, D.J., Vandewalle, D. and Kuenzi, M., 2017. Unpacking BATNA availability: How probability can impact power in negotiation. In Academy of Management Proceedings (Vol. 2017, No. 1, p. 16888). Briarcliff Manor, NY 10510: Academy of Management.

Zhang, D., Liang, Z.D. and Gao, J.H., 2017, May. Compliance Management in Bidding Procurement. In 3rd Annual International Conference on Management, Economics and Social Development (ICMESD 17). Atlantis Press.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Procurement Management Assignment Help

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