Contract Mgmt Topic 2.2 , 3 and 4

Performance based contract is also known as

• Key Performance Indicator

• Comprehensive Contract

• Term Contract

• Service Level Agreement

• Non comprehensive Contract

Which scenario would you use SOR in Ad-hoc contract (2 Correct Answers)

• Buying 20 set of office system furniture at $40,000

• Façade repair that cost $200,000 and will take 5months to complete

• Install 5 power socket outlet for $400 in the office

• Replacing 2 unit of AHU costing $40,000

• Replace 5 urinal sensors at $300 for the male toilet in the building 

Which scenario would you use SOR in term contract ?

• Monthly testing of Public Address system for the building

• Spare part replacement for the Public Address system

• Daily cleaning service for the building for 2 years

• Quarterly testing of the emergency generator system

Which are the 3 components in Service Level Management

(3 Correct Answers)

• Service Element

• Service Performance

• Service Requirement

• Service Management

• Service Measurement

Advantages of SOR contract (3 Correct Answers)

• Simplify and shorten time request for work to be carry out

• Requires technical knowledge for supervision of contract execution

• Reduce price fluctuation, variation and cost uncertainty

• Facility owner need not provide complete design

• Negotiation necessary during procurement stage

Disadvantages of SOR contract (4 correct answers)

• Effort needed to identify the scope in the contract to ensure contract covers all the work needed (task, labour, material etc)

• Higher fees for smaller projects

• No incentive for Cost control by contractor.

• Facility owner need not provide complete design

• Negotiation necessary during procurement stage

Contract stated that “Cleaners to provide cleaning service from 9am to 6pm from Monday to Sat”” is an example of _______under the Service Element

• Work Scope

• Conditions of Services available

• Service Standard

• Service Effectiveness

Contract stated that “Cleaners to response to site within 10min upon receiving feedback/ complaint on the cleanliness of the toilet” is an example of ________ under the Service Element

• Work Scope

• Condition of Services available

• Service Standard

• Service Effectiveness

Contract include the clause on “Quantum for Liquidated Damages” which is an example of _____________under the Service Element

• Assessment mode

• Service Standard

• Non Compliance Recourse

• Service Effectiveness

Definition on Extension of Time for a purchasing contract for office equipment

• Additional time given to supplier to complete their production

• Additional time given to supplier beyond the period indicated in the contract

• Additional time given for both parties to fulfil their obligation

• Additional time given to supplier to obtain the necessary certification