The Contract Administration, Term Paper Example

The public sector administration is a social public safety entity that serves a protection for the general public on the national, state or provincial, and local government levels.  The public sector has incorporated the critical services such as the homeland security, police protection, fire fighting, national defense, correction, urban planning, and other various social programs for the employees to serve the general public. The public sector also provides non-privatization and privatization services for the city such as the health care, security services, waste/water management, and shelters for abused and homeless people of which they are non-privatized for instance. While, on the other side, the privatization services are the services that should not be concerned to the general public. For example, the people get to acknowledge the details of the provisions of services provided by the private providers. For example, like an economic feasible for building protection for the social public, a research facility is asked to investigate a haphazardous chemical that produces a bomb. That is, upon the request from the national defense, hence the general public does not need to be known as these provisions of the contract is an intention and purported for protection when necessary. Sometimes, the contracts could become complicated because the information for varying reasons is not always included in the contract because it does not apply to the public sector. Simply put, the public sector does not provide other types of jobs nor services other than the social programs listed, thus, it cannot include information in the contract. Therefore, the other party must invest these resources in order to see the finished product efficiently. Therefore, they, the parties, have to use outsourcing services in search for the private and for profit companies for the maintenance, repair, and production services. The outsourcing services that have maintenance, repairs, or production supplies are commonly need for all governmental levels of its developed country. In the United States, for example, the city hired a company who has several certified “permaflex” repairers to repair roadways and they are to have the repairers to fill the asphalt onto the potholes from street to street around the city within a month schedule; that is, in order to prevent from further road damages. Sometimes, for example, in a scenario, the purchaser does not pay any monies upfront when the rendered, but the purchaser pays after the repairs. Meanwhile, the company stopped doing its job because of the payment they were supposed to receive were not paid on time due to lack of quality of refilled pothole as the purchaser had complained. Then, the administration of the public sector would review the contract, exercise the contract between the parties involved in the contract, and explain the terms of agreement that sets forth. That is, the parties must consent that they received the understanding of the provisions of their contract by signing the review form if necessary; and, by law, an arbitrator will be taken place in the arbitration court. Once, the problem has been investigated, the repairers may admit as to why they provided a good job but the materials they used were not qualified as thought. Then, the repairers must provide a different type or an additional type of asphalt to look quantified in order to receive their payment. However, it could happen to any company who faced such dilemma. This is why, the authors, Davison and Wright (2004; 2007) explained the importance of the conceptual framework for the public sector administration.  A conceptual performance framework for the public sector administration to monitor contract performance is important. A contract that is signed by the parties involving in a transaction is an agreement and while, a performance is abided by the rules being exercised from the plan being implemented from the project in a set of phrases in the process. In fact, most procurement contracts of the public sector are accounted for about 6 to 10 percent of Gross Domestic Product around the globe with 20 percent of savings. This is a quiet significant analysis— It is imperative for the procurement contracts to be analyzed of its contents associated with the risks because the contract risk is to which refers to the probability of financial loss from its failure performance. Hence, this means that the vendors may be imposed to the unpopular cost contracts that are highly fixed.  In the conceptual performance framework, there are six of nine problems that are commonly known in the supply chain performance market of which these procurement contracts are: (1)Contractual risk-Dispute resolution and personality conflict, (2) Performance risk-Definition of acceptance, (3)Performance risk-Poor performance, (4) Performance risk-Sub Contractors, (5)Performance risk- Other,(6) Performance risk- Risk of failure.  Often, during the process, the plan get interrupted by both internal and external (i.e., social, legal, environmental, biological, economic) factors. Such as the resolution, personality conflict, professional roles, leadership, knowledge bases, and directions —they are often can be misleading in finding the common ground. Sometimes, professionals use its tendency to test the “waters” in order to build a relationship. For instance, professionals such as staff, manager, and vendor project manager or employees may have a problem with their full understanding of the scope of their duties, schedules, payment schedules, or the goals of the plan in itself. Most of the time, the plan is implemented in a group meeting, so it is good to note to each party to confide to the implementer for more questioning as detailing their roles or their responsibilities and or their expectations of themselves and of others in the process, and so forth; if the money is not the issue. Most importantly, as risky it may appear, the conceptual performance framework in itself is supposedly a system for guidance for resolving the problems. Next, the performance risk-definition of acceptance, this means that, the contract should also include the limitations of the finished product and the expectation of the delivery of the finished product. This is to say that the problem must be adjustable as there is a potential setback of the damaged finished product. The product must display in different forms: firm, fragile, or damaged prior making a contract agreement. If the parties had already agreed then the parties should have the full expectations of what has happened; the parties should offer a solution for the damaged finished product. For example, a party may want to review the process if there are more than two units of damaged finished products, therefore, the parties shall agree to review the process and make a correction to the problem immediately as agreed. Next, the next following problem is the performance risk –poor performance that means that, in terms of, employees work performance or the payment schedules or the number of finished products was not sold on timely manner to which they are the setback factors in part or whole process. A poor performance could also mean that the process starting from the beginning to the middle to the end has not satisfy the expected results. For instance, the employees who have not performed to their fullest or to the best to product the products to the finish line because the problem could be relate to their intrinsic or extrinsic values that were not fulfilled. Moreover, the public sector administration did not create an incentive(s) to offer a value or benefit for employees to be motivated and to feel competitive to perform their fullest or to the best. In other words, it is important for the public sector administration to have an onboarding lesson for the employees and executive leaders as well. It is an intention for reducing the retention turnovers; and, to gain their loyalty to the company, product and service. Another instance, the payment schedules are the cash flows of the finished product goods sold which means that the every party must pay their part in order to see profits or revenues. Because, for example, when the finished products are to be sold on the week of sale. But, instead, the products were priced higher than agreed due to the merchant’s debt from other merchants. Therefore, half of the units of those products were sold while the other half of units of products were at idle mode.  Therefore, affecting the accounting balance sheet, the payment schedule for the specific amount of expected payment has been changed. It is important for the administration to exercise the contract of the payment schedules and the possible scenarios imaginable that could place every party at risk.  As many examples above have indicated problems that lacks transparency. A genuineness in relating to other people, with minimal efforts to make a good impression or the state of being “indiscernible,” that is, trying not to be perceived in certain social situation (e.g., when a party exceeds the expectations being sought for a task that is beyond agreement of the contract). For example, by avoiding bringing the unnecessary expenses, remaining conscious with the spending costs that are realistic fixed for each task that is projected to work, or by doing so placing yourself to confide with a professional with a genuine expertise to assist with the task(s) that is fixed.

Work Cited

Davison, William, D., CPPO, and Wright, Elizabeth. The Contract Administration. Herndon, VA. 2007.Web 6 Feb. 2015.

Davison, William, D., CPPO, and Wright, Elizabeth. The Contract Administration. Herndon, VA. 2004.Web 6 Feb. 2015.