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ROVISIONS (FAR) AND CONTRACT
REGULATORY PROVISIONS (FAR) AND CONTRACT PERFORMANCE
A contract involves a deal that is signed between two or more parties and which is bound to certain terms and conditions that must be met by the parties involved. W3hen talking of contract performance, one seeks to examine whether in the real sense, the parties which were involved in the contract acted in under the guidance of the contract terms. Has the deal been successfully achieved to give out the required results? This is the core of evaluating contract performance. Its main aim is to identify every party's response to the terms that bound the contract. It involves a bargain before signing of the contract under the discretion of its bound terms, which the parties must read and understand. For the contract to be closed, the parties involved must live fulfill the terms stipulated by the contract. Great attention and accuracy is required in the performance of the contract to ensure that every little aspect of the work expected to be delivered is explicitly paid attention to, so as to achieve the quality specifications that were indicated in the process of contract signing and/or bidding.
In the performance of the contract, the performer should pay attention to the issues and concern of quality control. This is important because it justifies the result; whether the delivery of the contract is satisfactory or not. In some cases, it is difficult to understand what the constitution of a contract entails as regards to the individual party's understanding. Consequently, this calls for a detailed interpretation and understanding of terms contained therein. A performance failure by either of the parties involved in the contract amounts to the breach of the contract. The contract's main aim is always to ensure an absolute delivery, failure to which one party, always no breached will feel discontented and may possible establish a lawsuit to determine the liability of the party that has breached the contract. The contract between Goodwill bottling company and Wanda Ltd. Company is bound to certain contractual terms as dictated by the international convention since they are found in two different countries. Wanda Ltd. is a company that sells alcohol while Goodwill is a supplier of the alcohol. The contract report indicates that Goodwill was supposed to supply Wanda with 30000 bottles of wine. Ten thousand (10000) bottles of Shiraz wine was to be delivered on the first shipment on around 10th January 2011. The second delivery was to be made on 15th February 2011. This was to be the delivery of 10, 000 bottles of merlot wine and the last shipment of the remaining 10, 000 bottles was to be done on 1st march 2011. According to the principles of contract performance, both the parties were expected to meet the contract bargains in which they had to understand their obligations in the very first place. The obligations of Wanda Company Ltd., was to make the payments and receive of the goods at the port upon delivery by Goodwill. Goodwill on the other hand was to ensure a timely delivery and meet the quality specifications during the delivery.
Regulatory Provisions of FAR Pertaining To General Contract Performance
Inspection/acceptance: according to FAR clause 52.212-4 states that only items that are in conformation with the contract requirements should be tendered by the contractor. It continues to assert that the government possesses the right of inspection of services or supplies tendered to be examined for acceptance. Nonconforming performances may be demanded by the government to be redone, repaired, or replaced at no cost at all. In case, the repair or replacement as demanded by the government does not at any end correct the weaknesses or defects, an equitable reduction of the contract cost or a sufficient consideration for the nonconforming services or supplies to be accepted. The post acceptance rights bestowed upon the government must be diligently exercised within a reasonable duration of time after the discovery of the defect and/or before any [further deformation or substantial change is affected on the item except only if the change is as a result of the defect.
Assignment describes the context in which the rights to receive payment due may be assigned by the contractor or its assignee because of the contract to any trust company, bank or financing institutions. Nevertheless, the contractor may not have the opportunity to assign its rights for receiving the payment should there be a third party involved in the contract. that it is only a written agreement made by the parties that can affect changes within the contract.
The FAR acknowledges the existence of disputes emanating from a contract. The parties involved within a contract may fail to reach a compromise any request made on should there be a need for equitable adjustment, appeal, or claim resulting from the contract terms. It offers therefore, that the dispute shall be attended as regards to the FAR 52.233-1.
In accordance to FAR, the liability of the contractor, is acknowledged for a y contract default except if nonperformance is a result of certain occurrences that the contractor have absolutely no control of and that it is not the contractor's fault, and negligence. These acts that the contractor may not have control over include the acts of God, the public enemy, Government actions involving its sovereign duties or its contractual capacity, epidemics, fires, unusually severe weather conditions, restrictions of quarantine, strikes or delays propagated by the common carriers. The contracting in any of the aforementioned conditions is therefore given the obligation of notifying the contracting officer or the other party in contract by informing through writing as soon as it is after such occurrences, set forward all-inclusive particulars that have the concern of then prevailing conditions of delay to inform the contracting officer of the delay occ0urrence cessations. This is described as the contract's excusable delays.
The contractor is also required by the FAR terms to submit an original invoice or electronic invoice if allowed and three copies of such to the address indicated in the contract, to be the recipient of invoices. Invoice must contain the following:
(i) Name and address of the contractor
(ii) The date and number of the invoice
(iii) Contract line, contract number, item number and the order number
(iv) Item description, measurement units, quantity, unit price and the item price extended on delivery.
(v) The number of shipping and the shipment date with the bill of lading included therewith and the shipment weight in the case of shipment on government the bill of lading of the government
(vi) Discount terms should prompt payment be done
(vii) Name and address of the official who is mandated to receive the payment.
(viii) Name, t5itle, and the telephone number of the individual to be 9 informmed in case of a defective invoice.
(ix) Taxpayer Identification Number (TIN) is required to be included by the contractor on the invoice if it is only required somewhere within the contract.
(x) The contractor should provide the electronic Funds Transfer banking information on the invoice if need be in the contract, and (xi) The contract to submit correct EFT banking information as regards to applicable solicitation provision, contract clauses.
The FAR also describes patent indemnity, in which the contractor has the right to indemnify the government officers, agents or employees against liabilities that include infringement (actual, contributory, alleged direct) costs of/or inducement to fringe ta any foreign trademark, patent or copyright which is due to contract performance if the contractor is notified reasonably of such proceedings and claims.
Item risk of loss is the contractor's liability until when the ownership goes to the other contracting party upon receivership. This explains that the contractor is in total control of the items before and during delivery until the other party receives them.
Termination of the contract can only occur through a written notification the spells the termination cause. In case of the government, it may affect termination in the event of the default caused by the contractor or when the contractor fails to observe certain contractual terms and conditions, or fails to give sufficient assurance of performance in the future, to the government if it requests so. In this case, the contractor will have no choice but to bear the costs at any level. In addition, the government may require remedies to be done by the contractor upon the contract termination.
Regulatory provisions of FAR in the contract Performance Report between Goodwill Company and Wanda company Ltd.
Obligations of Goodwill wine Ltd.
The contract between the two companies as established is faced with difficulties. Goodwill in its obligation has failed to honor or rather strictly respond to the terms of the contract. For instance the first delivery ought to have been done on 10th January 2011 for purposes of shelving on 15th January 2011. Goodwill only managed to do so on the morning of 14th Jan 2011 making the prepared shelf of Wanda to stay empty almost the…[continue]
"Regulatory P Rovisions Far And Contract Performance" (2012, May 26) Retrieved October 27, 2016, from http://www.paperdue.com/essay/regulatory-p-rovisions-far-and-contract-111360
"Regulatory P Rovisions Far And Contract Performance" 26 May 2012. Web.27 October. 2016. <http://www.paperdue.com/essay/regulatory-p-rovisions-far-and-contract-111360>
"Regulatory P Rovisions Far And Contract Performance", 26 May 2012, Accessed.27 October. 2016, http://www.paperdue.com/essay/regulatory-p-rovisions-far-and-contract-111360