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CMP - Unit 14 - Other Issues in Contract Management - PPT - Final

This document provides an overview of key topics in contract management for projects, including: 1) The objectives of the lecture are to explain the law of private and public contracts in India, constitutional requirements for public contracts, relevant codes and manuals, and the need for procurement law. 2) The lecture covers the laws of contracts, private and public law, Indian constitutional rules for government contracts, codes and manuals issued by the Government of India, and the need and status of procurement law in India. 3) Procurement law aims to maximize economy and efficiency, promote competition and transparency, and foster participation in procurement. The UNCITRAL Model Law provides guidance on international procurement standards.

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Brian Boyd
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187 views16 pages

CMP - Unit 14 - Other Issues in Contract Management - PPT - Final

This document provides an overview of key topics in contract management for projects, including: 1) The objectives of the lecture are to explain the law of private and public contracts in India, constitutional requirements for public contracts, relevant codes and manuals, and the need for procurement law. 2) The lecture covers the laws of contracts, private and public law, Indian constitutional rules for government contracts, codes and manuals issued by the Government of India, and the need and status of procurement law in India. 3) Procurement law aims to maximize economy and efficiency, promote competition and transparency, and foster participation in procurement. The UNCITRAL Model Law provides guidance on international procurement standards.

Uploaded by

Brian Boyd
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Program : MBA

Semester : IV
Subject Code : PM0018
Subject Name : Contract Management in Projects
Unit number : 14
Unit Title : Other Issues in Contract Management
Lecture Number : 14
Lecture Title : Other Issues in Contract Management

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Unit-14 Other Issues in Contract Management

Other Issues in Contract Management

Objectives :

• To explain the law of contracts both for private and public


• To outline the constitutional requirements of public contracts in India
• To select the codes, manuals and GFR which presents the procurement
procedure
• To list the needs for procurement law
• To explain outsourcing as service economy

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Unit-14 Other Issues in Contract Management

Lecture Outline
• Introduction
• Law of Contracts
• Private and Public Law
• Indian Constitution and Government Contracts
• Codes, Manuals and Regulations, GoI GFR
• Need for Procurement Law
• UNCITRAL Model Procurement Law
• Status of Enactment of Procurement Law in India
• Cost of Contracting
• Contracting and Service Economy
• Summary
• Check Your Learning
• Activity

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Unit-14 Other Issues in Contract Management

Introduction

• There are certain codes and manual for the contracts documentation
and execution.
• Codes and manuals are just guidelines and need not be followed
strictly by the parties involved.
• Any party who does not follow them is not punishable by law.

In this lecture you will learn about the legal and constitutional
requirements in the formation of contracts and their management.

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Unit-14 Other Issues in Contract Management

Laws of Contracts

• Law signifies a rule of action and has applied


indiscriminately to all kinds of action, in
its most general and comprehensive sense.

• The law of contracts deals with rights in personam and forms a part of
the law of obligations.

• All aspects of contracts, including formation of contracts and damages


in case of breach of contract comes under the Indian Contract Act.

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Unit-14 Other Issues in Contract Management

Private and Public law

• Public Law deals with constitutional and


administrative powers of the State and also
certain relations between the State and
the individual.

• Private Law on the other hand deals with the rights of the subjects.

• The objective of law is to create and protect legal rights

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Unit-14 Other Issues in Contract Management

Indian Constitution and


Government Contracts

• The democratic function of the

Government of India is provided by the


Indian Constitution.

• The fundamental rights are freedoms guaranteed, but these freedoms


are not absolute, but are justifiable meaning judicially enforceable.

• Government contracts and execution of the same is a professional


occupation, where everyone has a fundamental right to practice.

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Unit-14 Other Issues in Contract Management

Codes, Manuals and Regulations, Gol


GFR

• The Government functionaries do not have an absolute discretion.


Certain precepts and principles have to be followed.

• Central Public Works Department has issued Manuals for its officers,
which is the premier organisation for the construction of public works.

• General Financial Rules (GFR) is a collection of instructions for Central


Government Officers dealing with matters of financial nature.

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Unit-14 Other Issues in Contract Management

Need for Procurement Law

Objectives of procurement law:

• Maximising economy and efficiency in procurement


• Promoting competition among suppliers and contractors
• Fostering and encouraging participation in procurement proceedings
• Promoting integrity, fairness and public confidence
• Achieving transparency in the procedure relating to procurement.

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Unit-14 Other Issues in Contract Management

UNCITRAL Model Procurement Law

• United Nations Commission on International


Trade Law is an organ of the United Nations
general Assembly.

• The procurement of goods or construction was governed by the


procurement of services.

• It was established to promote the harmonisation and unification of


international trade law.

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Unit-14 Other Issues in Contract Management

Status of Enactment of
Procurement Law in India

Enactment of Procurement Law in India:

• “Tamil Nadu Transparency in Tenders Act, 1998” was first enacted by


Tamil Nadu.

• All government departments, state PSUs, universities, and local


bodies are applicable to this act.

• GoI has not agreed till date to enact a Procurement Act, but has
issued revised General Financial Rules (GFR) in 2005.

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Unit-14 Other Issues in Contract Management

Cost of Contracting

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Unit-14 Other Issues in Contract Management

Contracting and Service Economy

• Outsourcing means subcontracting a product design or manufacturing,


to a third party company is called outsourcing.

• R&D: Emerging mass markets and availability of expertise in the field at


a relatively lower cost are the key drivers for R&D outsourcing.

• Outsourcing in the Information Technology to commission the


development of an application to another organisation that specialises in
it.

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Unit-14 Other Issues in Contract Management

Summary

• To ensure order, peace and security in the society,


and guarantee some degree of uniformity is the
objective of law.

• Law of contracts comes under Private law, which is again divided into
Subjective and Adjective law.

• Indian contract Act deals with aspects of contracts, formation of


contract, breach of contract and damages in case of breach.

• Procurement law promotes maximising economy and efficiency


provide fair and equitable treatment to all suppliers and contractors.

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Unit-14 Other Issues in Contract Management

Check Your Learning

1. Mention any two objectives of procurement Law.


Ans. The objectives of procurement law are:
• Maximising economy and efficiency in procurement
• Achieving transparency in the procedures relating to

procurement

2. What are the types of contracting costs?


Ans. Direct and indirect costs are the two types of contracting costs.

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Unit-14 Other Issues in Contract Management

Activity

1. UNCITRAL Model Law launched a project in 2003


which aims to update the Model Law to take account
of new practical developments. Gather the information
about some important changes made in the UNCITRAL
Model Law in recent times.

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