Procurement and Contract Law Report: JDPi IT System Procurement

This report provides a comprehensive analysis of procurement and contract law, focusing on a case study involving JDPi's IT system procurement. It begins by discussing the benefits of competitive tendering and e-auction, along with strategies to overcome challenges faced by procurement and supply chain managers. The report then delves into contract law, examining the terms and conditions governing the contract between JDPi and Capgemini UK PLC, and analyzes the legal rights and obligations of each party. Furthermore, it addresses the enforceability of a promise to pay an extra sum and explores different sourcing approaches for IT systems, considering the associated legal aspects within supply chain relationships. The report concludes with a summary of the key findings and recommendations.

Procurement and
Contract Law

Table of Contents
INTRODUCTION...........................................................................................................................................3
LO1..............................................................................................................................................................3
Discuss the benefits for JDPi of using a competitive tendering approach (as well as the use of e-
auction) to source the IT system.............................................................................................................3
What common challenges faced by procurement and supply chain managers can be overcame? What
other ways/strategies can be used to minimise those challenges?.........................................................4
LO2..............................................................................................................................................................5
Whose terms and conditions govern the contract?.................................................................................5
What does this mean to the legal rights/obligations of JDPi?.................................................................6
You are required to advise Capgemini UK PLC whether he has any rights in law to enforce JDPi r’s
promise to pay the extra £100,000.........................................................................................................7
LO3..............................................................................................................................................................8
Examine different sourcing approaches that could be used by JDPi to more effectively source IT
systems. What legal aspects need to be considered in these supply chain relationships?......................8
CONCLUSION...............................................................................................................................................9
REFERENCES..............................................................................................................................................10

INTRODUCTION
Procurement contract are the written form of contracts where buyer and seller enter into
the agreement in which buyer shows his interest to buy product in exchange of payment
transactions. Although, in any type of contract there must be consideration but in procurement
contract mainly monetary benefits are provided after acquiring goods or services. Procurement
contract are mainly formed on the basis of requirement of a person or an entity. In context of the
file, one of the case studies has been presented which has a tendering approach. On the basis of
case study, it will be explained that what are the different benefits of competitive tendering
approach in any of the IT system. Along with this, challenges will be mentioned in it. Even there
will be some of the situation where advises will be presented in the file.
LO1
Discuss the benefits for JDPi of using a competitive tendering approach (as well as the use of e-
auction) to source the IT system.
Competitive Tendering Approach can be explained as the auction process in which
number of large institution and investors can show their interest by bidding on the tender price.
This particular process was mainly developed from United Kingdom in the year 1980s. The
major aim behind the enforcement of this respective process was just to reduce overall cost
including improvement in efficiency. The first major example of competitive tendering was seen
in the year 1983 when NHS started to show their interest in competitive tendering (Anchishkina,
2017). In context of JDPi, if they use competitive tendering approach, there will be number of
benefits which they can easily obtain from future period. Some of those benefits has been
mentioned below:
 Competitive Tendering approach will allow JDPi to find best result for the suitable price.
 This particular process will encourage their supplier to deliver them effective services for
future benefits.
 The competitive to rivalry firms can be easily given with the help of competitive tending
approach.

This are some of the major benefits which can be obtained by the organisation like JDPi after
following the Competitive Tendering Approach. Not only this but there will be other monetary
benefits as well which can be obtained by JDPi.
E-auction is defined as the electronic transaction process that takes place between seller and
the bidders. This process is conducted through electronic means where gathering of bidders is
not necessary at a same time. In modern time period, it is among the most suitable option for
having any sort of auction because it mainly saves time and money which is very much
important for any of the business organisation (Silbereis, 2020). These types of auction can be
conducted between business to business, business to consumers, or consumer to consumer and
even suppliers has the option where they can bid the price through online process.
What common challenges faced by procurement and supply chain managers can be overcame?
What other ways/strategies can be used to minimise those challenges?
As per the given scenario of the case, it was found that procurement and supply chain
manager was facing number of issues and challenges. It was mainly seen that the technology and
the systems which were purchased by the organisation were outdated and those were not
effective as well. In any of the circumstances, it is necessary for any of the entity that they should
be able to work according to the requirement of market but their machinery was out dated and it
was not allowing them to compete in the market. Even there was a dispute between Ben who is a
Procurement manager and HR manager. Not only this but there were number of other challenges
which were being faced by procurement and supply chain manager such as their data were lost at
a increasing speed. The downfall of company was creating number of issues for the organisation
as they were not able to perform their task as per the requirement. Also, there operating staff
were being demotivated. This are some of the major problem and challenges which were being
faced by the entity on a regular basis.
It is necessary to understand that whenever any of the problem arises in front of the
management, they must be able to find out the possible ways through which problem can be
resolved. If procurement and supply chain management will be able to find out the possible way
to deal with situation then it will be easy for them to remain within the competition. Some of the
major way through which organisation can deal with the problem is by introduction of new
technology which can help them to secure data (Semple, 2017). Secondly, management of the

company must work for providing training to the employees because whenever they technology
or software are introduced then there is a requirement of providing proper training to the
employees. The third thing which is needed to be considered is that the employees of a company
are being demotivated just because of the performance being shown by the organisation even
after performing well in the market. If organisation will be able to overview all of this strategy
then it will be easy for them to ensure that company is able to perform better and even, they are
able to secure that data and system for which they operate within the market.
LO2
Whose terms and conditions govern the contract?
Contract Law: It is defined as the law which forms the legal agreement between two
parties which must be completed within the given time period. It is essential to understand that
whenever any of the agreement are formed, neither of involved party is allowed to breach the
contact and if in case they do so then legal penalty can be imposed. For forming any of the
contract there should be consideration where offer and acceptance plays the huge role in
performing any of the work. Contract law have its own importance which forces the party to
complete their part of work on specified time period which is the most important reason that
forming legal contract helps the involved party (Potter, 2017). In order to commence any of the
contract there are number of elements which must be considered. The first important element of
contract is offer which must be made the party where acceptance should be there. When there is
a offer and acceptance, the most important thing is that contracted parties must be able to
perform their part of work and consideration should be there in any form. The other important
thing which should be included in the contract is that it must be valid in nature as it is not
allowed to form contract with unsound minded person or even with minor. Both of this
circumstance will not allow to form a valid contract. If all of this condition are met then legal
contract can be formed between the parties which must be completed on mentioned time period.
As per the given scenario, JPDi and Capgemini UK PLC are trying to entre into the
contact where their main motive is to form new IT system software which can allow them to
maintain data. In any of the contact, terms and condition which are included are always required
to be included after the mutual understanding of the parties. It is necessary because involved
parties are needed to perform their part of work within the contract and failure in their work can

raise the opportunity for legal issues. In simple words, the contract which has been formed by the
JDPi and Capgemini UK Plc will be governed by both the parties because of the involvement
which the both have to show within the project for competing it on time (Rašić, Milenković and
Vojković, 2019). But it is equally important that whenever any of this terms and condition are
included consent of both the party should be there and there should not be inclusion of any of
those terms and condition which may create issue for either of parties.
What does this mean to the legal rights/obligations of JDPi?
Contact law has its own important whenever any of the party try to enters into the
contract. It is essential that whenever any of the contract are formed it must be followed by the
parties because of the legally which it has obtained. Any of the contract which are formed legally
do not allow any of the party to breach the contract.
Breach of contract is the situation in which either one of the parties fails to perform their
part of work in the specified manner. This is the situation where legal action can be taken against
the defaulter in which certain benefits are given to claimant. In order to receive benefit, it is
necessary that claimant must be able to prove about the default performed the contracted party.
As per the law contract law legal rights means interest accepted and protected by the law.
Here, any of the debasement of any legal rights is punishable by the law. As per the given case
scenario, the legal rights of JDPi is that in any of the condition, Capgemini UK Plc must be able
to perform their part of work. It means that it Capgemini UK Plc should be able to prepare the IT
software according to the contract formed between the parties (Adriaanse, 2016). If in case they
fails to perform their work according to the requirement then JDPi has the right to take legal
action against Capgemini UK Plc. Here, they can claim for the damages include the time wasted
just because of the Capgemini UK Plc. Legal rights have importance in any of the contract and it
must be considered. Overall, it allows to recover all of the damages from which company has to
suffer.
On the other side, legal obligation means duty imposed legally upon any of the person or
through the contract formed between the parties. It is essential to perform the duty as per the
required manner. In context of the given case study, the legal obligation of JDPi to pay the
contracted amount which has been agreed as per the terms and condition of the contract. Also, in
any of the circumstance, JDPi is not allow to terminate the contract once agreement is formed

(Bao and et. al., 2019). These are some of the legal obligation which must be considered by JDPi
once they have entered into the contract with Capgemini UK Plc.
Although, Legal rights and obligation are different form each other but ultimately it
ensure that either of the involved party do not breaches the terms and condition of the contract
which has been formed between them.
You are required to advise Capgemini UK PLC whether he has any rights in law to enforce JDPi
r’s promise to pay the extra £100,000.
From the given scenario of the case, it was found that JDPi has included some of the
specific terms and condition in the contract. In this contract, JDPi is willing that their operation
system must be upgraded from MSV3 to X2014. This willingness from the JDPi was shown in
between the contract when half of the work was already completed. According to the contract, it
is necessary that contracted party will only perform those part of work which has been
mentioned in the contract. Even Capgemini UK Plc was performing in the required manner as
well. JDPi has decided to convert terms and condition in the mid of contract and for this they has
decided by their management.
According to the contract law, it is necessary that only contract party will perform those
specified terms which has been mentioned in the contract. If in case terms are changed then
contact can be voidable as well. Talking about the given case study, Capgemini UK Plc was not
willing to covert any of the changes to their working style of contract because changes will incur
higher charges (£100,000). In addition, it will not be possible for them to complete the whole
task till the time period of December (Popescu, Onofrei and Kelley, 2016).
As per the demanded of JDPi, it was not possible for Capgemini UK to complete their task with
the contracted price so that JDPi has agreed to pay the additional sum of £100,000. It means that
new contract has been formed between the parties where X2014 must be included in the system
software where additional contract price of £100,000 will be given to Capgemini UK.
Later on it was found that JDPi denied to pay the additional sum of £100,000 as they
presented the facts that it was not mentioned in the agreement. But Capgemini UK has the legal
right to claim for additional sum of £100,000. It is because new contract has been formed
between the parties where it was decided that if Capgemini UK will be able to complete their

part of work on specified time period within inclusion of latest software then they will get the
additional amount of £100,000. Here, Capgemini UK has the option to file legal case against
JDPi for the breach of contract under which they will be entitled to receive additional sum of
£100,000.
LO3
Examine different sourcing approaches that could be used by JDPi to more effectively source IT
systems. What legal aspects need to be considered in these supply chain relationships?
Sourcing is also known as procurement which mainly emphasis that any of the business entity
can work according to the set criteria of the business so that goals can be accomplished. As
business organisation like JDPi will to introduce some of the new IT system for the business
entity, sourcing can be one of the options through which they can obtain effective result in future
time period. It is essential to understand that whenever any of the entity try to use sourcing
approach they must identify about their needs and requirement so that goals and target can be
accomplished (Ivanova, 2018). Failing to do so will create different types of problem as goals
will not be accomplished through this particular process. Some of the sourcing approach which
can be used by JDPi has been listed below:
Low cost Country Sourcing: It is among the popular form of sourcing the work where it
is mainly focused that how cost can be reduced for performing any of the work. Basically,
operating costs are reduced in it just because of the labour charges which are included in it. In
context of JDPi, low cost sourcing will allow them to save unnecessary charges which is quite
necessary in current scenario.
Global Sourcing: It is also almost similar to the approach of low-cost country sourcing
but it do not focus that benefit should be earned by focusing lower labour cost. The main aim
within this type of sourcing is that how company can get the taste of international market for
conducting their business activity.
Captive Service operation: It arises whenever the subcontracted services are offered by
a business owned by the client, or are inside the same community. It provides a higher degree of
oversight, and also resolving sensitive, protection and violation rights concerns that may occur
(Different Types of Sourcing: Methods, Pros & Cons, 2018). Yet it is not possible to reach the

same degree of cost savings as well as the ability to take advantage of the capabilities of the
manufacturer.
Conventional Agreement: It is the popular way of sourcing where company tries to
formed the legal agreement with another entity where it is majorly focuses that how discussion
can also allow to reduce the overall cost. Here, higher level of trust is required data of the
company are kept in risk in it.
These are some of the popular form of sourcing which can be used by the organisation
like JDPi for the development of their system software. This process might be cheaper as
compared to other form of sourcing the business activity.
Some of the legal aspects that needs to be considered in this particular supply chain
relationship is listed below:
 It is necessary that contract must be formed by the parties where each of the terms and
condition must be written at beginning.
 It is equally important that all of the task which are being performed after entering in to
the contract is meeting out the legal requirement (Andrecka, 2017).
 In any of the circumstance the confidential information about the organisation should not
be shared with any of the outsiders because it may create issues for the business
organisation in attaining goals and target.
CONCLUSION
From the above discussion, it is concluded that procurement and contract law are the two
most important are which must be considered at the time of forming the agreement. It is said that
whenever any of the business organisation performs its business activity with the help of other
organisation as well, then proper agreement must be formed. Once agreement is formed between
the parties, it is necessary that all of the guidelines must be followed. If any of the party bring
changes to the terms and condition at the time of performing agreement then it will be void in
nature but new contract can be formed with the help of mutual understanding among the
contracted parties.

REFERENCES
Books & Journals
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municipal, and regulated procurement. VOPROSY ECONOMIKI, 11.
Silbereis, S., 2020. Interactive, Online, Authentic Assessment in a British University’s
Procurement and Contract Practice Module: Case Study. Journal of Legal Affairs and
Dispute Resolution in Engineering and Construction, 12(2), p.05020002.
Semple, A., 2017. Socially Responsible Public Procurement (SRPP) under EU Law and
International Agreements. European Procurement & Public Private Partnership Law
Review, 12(3), pp.293-309.
Potter, P. B., 2017. The economic contract law of China: Legitimation and contract autonomy in
the PRC. University of Washington Press.
Rašić, M., Milenković, M. and Vojković, G., 2019, May. Electronic auction in european and
croatian public procurement law. In 2019 42nd International Convention on
Information and Communication Technology, Electronics and Microelectronics
(MIPRO) (pp. 1343-1348). IEEE.
Adriaanse, M. J., 2016. Construction contract law. Macmillan International Higher Education.
Bao, Z. and et. al., 2019. Procurement innovation for a circular economy of construction and
demolition waste: Lessons learnt from Suzhou, China. Waste Management, 99, pp.12-
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Popescu, A., Onofrei, M. and Kelley, C., 2016. An overview of European good practices in
public procurement. Eastern journal of european studies, 7(1).
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Union in the field of public procurement. In International conference KNOWLEDGE-
BASED ORGANIZATION (Vol. 24, No. 2, pp. 189-193). Sciendo.
Andrecka, M., 2017. Corporate social responsibility and sustainability in Danish public
procurement. Eur. Procurement & Pub. Private Partnership L. Rev., 12, p.333.
Online
Different Types of Sourcing: Methods, Pros & Cons. 2018. [Online]. Available Through:
<https://intrepidsourcing.com/trade-wiki/sourcing-methods-pros-cons/>