It is important to distinguish between the suspension of a contract (the temporary cessation of contract performance), and the suspension of a supplier, contractor or services provider. The former may be invoked by either party to a contract for specific reasons defined in the terms and conditions of the contract, such as Force Majeure. The latter is a decision made by the purchaser to suspend the other party from participating in the bidding process (debarment) or from signing a contract with the for a stipulated period of time as a result of a breach of contract or other offenses stipulated in the public procurement rules. Contracts should contain a provision for either party to suspend or terminate the contract under certain conditions. Grounds for suspension or termination of a contract are usually stipulated in the General Conditions of the Contract.
A contract suspension does not necessarily lead to termination. The reasons must be contemplated in the contract. An example of a situation that could lead to contract suspension is the temporary inability of a supplier, contractor or service provider to comply with the contract terms and conditions for reasons beyond their control (Force Majeure).
Whenever any deficiencies are observed during contract administration, the first step is to verbally address the issue with the other party. If results are unsatisfactory after this verbal notification, then it should be communicated formally and the other party given a certain period of time to remedy (cure) the defect. If the deficiency is not remedied within the stipulated timeframe, contract suspension or termination should be considered after taking into account other available remedies.
Contract suspension should be considered before contract termination, because one of the main objectives of procurement is to award contracts in order to satisfy particular requirements https://cheska-lekarna.com. Additionally, the cost implications (considering time lost and other dependent procurement requirements), of having to re-tender to select another supplier, contractor or service provider, should also be carefully considered before quickly deciding on contract termination prior to exhausting all other possible measures.
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