Importance Of Procurement Contract

A contract is defined as a mutually binding agreement which obligates a seller to provide something of value for example a product or service and at the same time obligates a buyer to provide monetary compensation as agreed. Contractual agreements range from simple to complex agreements where the reflection of simplicity or complexity of deliverables or efforts required is documented. For best practices, it is usually adviced that parties to a contract must have the agreement written and for enforcement purposes, both parties to sign the agreement accepting the terms and conditions stipulated. In keeping up with modern technology, acceptance of contracts has evolved to recognize various forms of digital/electronic signatures and acceptance through email, fax or telex. There exist various forms of contracts from sales contracts, lease contracts to trade agreement contracts. This report will look at procurement contracts and aspects of procuring goods or services.

It is the responsibility of the buyer to ensure all procurements meet the required or specific needs while adhering to the organisation’s procurement policy. In majority of organisations, policies and procedures are documented defining the procurement rules and regulations and also indicating the official that has the authority to sign and administer procurement contract agreements on behalf of the organisation. In the University of Nairobi, there is a department called procurement led by a manager. The department has 42 members if staff and their main responsibility are to co-ordinate procurement and disposal activities in accordance with the public and disposal act (2005) and public procurement act (2005). Also the department offers professional advice to the University on procurement