Introduction half page
conclusion half page
Contract and Its Formation:
The SEHA/ Owner intend to engage a service provider to supply man power to operate the catering services in its facility in Al Ain. Accordingly SEHA has pre-qualified number of companies, who is capable to provide the service meeting the SEHA requirement. The owner has issued the enquiries to all companies considered under the list and requested their interest to participate in the tender. Further owner has issued the scope of the service along with the terms and conditions of the contract for the acceptance of the bidders. In response to the above tender bidders has submitted their technical and financial proposal with acceptance/ deviations to the terms and conditions stipulated by the owner. The owner has conducted a technical evaluation of the proposals and ensured that the bidder’s proposals meets the service requirement. During this exercise formal communications were recorded between the owner and the bidders to resolve both contractual and technical deviations through clarifications and tender bulletins. Finally the owner has evaluated the financial proposals submitted by the bidders and selected one Company based of techno-Commercial merits. The above communications along with the original documents (Contract terms/conditions and Schedules) has formed as the legal contract agreement between the two parties namely the owner and the selected Service Provider. The final agreement to be signed by the authorized representatives of both parties. The agreement is arranged as two parts. The first part covers the terms of the agreement and the second part as an attachment to the first parts includes standard procedures of SEHA. The owner has drafted and applied a standard agreement suitable for many services which they regularly avail for its business operations.
The key elements of the contract was the contract duration and contract price. The Terms of the agreement has covered the following major aspects;
• Fees and Penalties
• Reporting and Notification
• Management and Supervision
• Performance Management
• Representation and Warranties
• Liability and Indemnity
• Force Majeure
The Schedule includes; KPI, Personnel Roles and Responsibilities, Fees, Standard Operating Manuals, OSHMS requirements.
The followings gaps are identified through the review of the above agreement.
a. Pandemic is not explicitly captured as Force Majeure.
b. Agreement regulation for the change in labor laws are not covered.
c. The prequalification requirement for employees are not elaborate even though the core element of the agreement is man power supply.
d. Annual Performance evaluation criteria is not addressed while it is a KPI item.
e. Code of conduct for employees is not provided.
f. The response of agreement in terms of international embargo, sanctions and restrictions are not covered.
g. The owner’s positions in the event of settlement of financial liability of Service provider to other parties due to court order is not covered.
h. Limitations and authorization of press release and social media usage by the employees of the service provider is not mentioned.
i. Interface other operating contractors/ service providers within the same facility is not mentioned.
j. Arbitration is mentioned.
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