Summary
Admittedly, contracts form the basis of the ways in which most organizations conduct business. Most of the agreements created by firms are embedded in business projects. Conventionally, business projects require the input of different parties in an organization (Schoenfeld, 2020). For a business project to bear success, various issues must be put into consideration. For instance, the interests of different parties are worth considering. The topics discussed in this white paper comprise contract terms, statements of expectation, and general guidelines governing the agreement between the organization and the contract provider.
Contract administration involves managing various business risks. For this reason, it becomes necessary to administer a contract at some point in the business cycle. The basic purpose of an agreement is to monitor performance trends and ensure that all contract objectives are met on time and within the planned budget. Additionally, it is imperative to administer a contract because formed commitments help detect any system deficiencies and consequently find remedies or solutions to problems before their impacts escalate.
Statement of Expectation
The company will engage private trainers from a contract provider to offer vocational training and education to the company’s employees. The trainers are expected to deliver quality and relevant industrial training that will positively impact the workforce. It is expected that the training that employees will get will translate into actual results in terms of workplace output. Regarding the statement of work, training services will be provided by private trainers at the organization’s premises.
The training period will be scheduled to take place for a period of five weeks. The actual starting date of the coaching is scheduled for 16th May 2021. There will be two phases of training; the first phase will target employers. The purpose of this teaching is to make managers cognizant of the contracts that they owe to their employees. Training services offered at this level are expected to be implicit in quality and authenticity. The primary intention is to bring meaning to the affairs of the organization.
On the underscore, the second phase will particularly target employees. In any organizational setup, employees have an intrinsic relationship with their employers. In this regard, it is imperative for them to develop a good understanding of the contracts that they form with their employers. Moreover, the trainers will be tasked with the responsibility of training the staff of the organization on all other matters regarding corporate performance and management.
There are specific rules that both companies are required to adhere to. For instance, the buying company must accept to produce the initial draft for consideration (Schoenfeld, 2020). This document helps the contract provider to get a legal ground for suing the buyer in case they breach the terms of the contract. The buying company is also obliged to adhere to payment plans as agreed in the contract agreement. On the underscore, the contract provider is required to adhere to the rule of commitment to the agreement. In our scenario, the provider of training services must be willing to offer training services to the organization until the date of contract expiry.
Request for Information
The organization in question needs to have a dire need for specific and personalized training. From the previous phase, stakeholders had proposed to always be given assurance of the success of a project prior to its commencement. In this regard, the information requested is implicit on whether the trainers will be able to deliver an 85% success rate, which is the threshold set by stakeholders. Primarily, employers and other participants need to be given clear details of each of the contracts. Both public and private trainers who will bid for the agreement are required to clearly state the amount of time that it will take to complete each phase of the project.
Additionally, the trainers are required to attach a quotation of the asking price and other charges that will accrue as a result of their engagement by the company. Notably, the previous phase was not carried out carefully. Employers and other stakeholders were left with numerous queries regarding the awarding of the contracts. This time, the management is devoted to being keen on asking for the required information before engaging any contractor.
Appropriate Contract Format
For the contract postulated in this scenario, the preferred contract format would be the fixed-price contract. In this type of contract, the payment amount is not dependent on the resources used or the time is taken to complete a project. In this agreement, the cost of the project will be set in line with the buyers’ request. The fixed-price contract will be preferred to other agreement formats because it typically provides a well-defined process that has specific phases and deadlines. As noted earlier, the contract featured in this white paper is meant to be completed in two phases that have certain deadlines.
The fixed contract format will provide a realistic way of completing the phases within the specified period. Another advantage of the fixed contract format is that it eliminates the chances of commitment breaching (Schoenfeld, 2020). In this regard, there will be no chance for any of the parties engaged in the contract to breach the terms of the agreement. In a fixed contract, the buyer is compelled to adhere to all detailed specifications dictated by the seller. According to the stipulations of the fixed contract, the organization, which represents the buyer, will be required to provide a checklist and a project scope statement. In essence, this form of agreement eliminates all possible chances for breach of contract; therefore, it is the best for this scenario.
Desired Terms
There are various desired terms featured in the UCC that are suitable for inclusion in this project. One of the most perceptible terms is acceptance which works together with another word called to offer. A combination of the two terms forms a mutual consent between two parties that get into a contract. In the present scenario, acceptance will apply on the seller’s side. The seller will be inclined to adhere to essential agreements that are featured in the contract details. In conventional law contracts, the acceptance must be congruent with the offer. If the acceptance does not resonate with the offer, the contract formed will not be valid.
Another term that can be considered for inclusion is a bilateral contract. It will be imperative to specify that the contract that the two parties are entering into is bilateral. A bilateral agreement is one in which both parties make a promise. In this case, the contracting company will promise to offer training services to the employees of our organization. On the underscore, the organization will show commitment to the contract by offering payments to the other party.
Reference
Schoenfeld, J. (2020). Contracts between firms and shareholders. Journal of Accounting Research, 58(2), 383-427. Web.