CONTRACT MANAGEMENT

3.10 Research

What would be the function of research in contract planning?

is defined as the creation of new knowledge and the use of existing knowledge in a new
and creative way so as to generate new concepts, methodologies and understandings.

In contract planning researching is a very useful. It helps an organization gather the

data and information they need for choosing the supplier.
In doing research the organization contacts and consult the people within the
organizations and other external organizations who have developed market documents,
draft contracts and engaged contractor oversight similar to the one being procured.
These market documents will help the owner to asses the supplier. They can check the
supplier could address the problem or can do the project and will it benefit the
organization working with the supplier.

The consultant may give a sample of a draft contract to the owner. – most contract
followed the same format they begin with an introduction which identifies the
agreements thru a title then followed by its supplements, major terms and concluding
part which specifies the laws applies to the contract.
And the contract oversight objective is to assess the effectiveness of the company’s
policies and practices for overseeing contractor performance from contract award to
completion, and to identify possible areas for improvement.
When doing the consultation the representative will document the strengths, weakness,
problems and lesson they have learned.

Researching this time can be done with the internet, searching for market documents,
contracts or products used by the other organizations. Reviewing websites for useful
information will helps to check with the trade associations and professional
organizations to identify industry practices, methods, standards and rules that will
deliver the good or perform the services.

Another approach for identifying information regarding the availability, features or

measures for the purchase of goods and services is to send an Invitation for Bid (IFB),

What is an Invitation for Bid?

An invitation for bid sometimes referred to as an invitation to bid, it is used in situations

where potential suppliers or services providers differ principally on price.

Issuing an IFB allows a company to provide a detailed written specifications including

terms and necessary conditions for work on specific project it wants to contract out.

 With an invitation for bid, a comprehensive solicitation will describe the

project in detail, including submission requirements, deadlines, project
scope, duration, minimum qualifications, mandatory service standards, and
required warranties.
 By providing such details, a company using the IFB process can
streamline its decision process by choosing the qualified bidder with the
lowest-priced bid.
 IFBs are most efficient when the entity seeking bids has a detailed
understanding of the work or service it needs and the steps necessary to
completing it.

Potential suppliers may respond to the IFB sending their Letter of Intent with information
that will assist the owner during the contract management process.

While researching the owner may wish to contact the potential suppliers to discuss the
procurement. This is an acceptable practice as long they solicit information from more
than one supplier and advises he supplier that the owner’s interest is strictly for
research purposes, and that any formal request for pricing or other information will be
made through formal competitive sealed bid.