2.6 Managing delivery and acceptance.
The role of a contract manager is to ensure the supplier is meeting its obligations under the contract - including that the goods or services purchased under the contract are received on time, within budget and are fully compliant with contract specifications.
If the goods or services do not meet the standard required in the contract, you should notify the supplier immediately and agree on a way forward to ensure they meet the contract standard. The contract may include provisions around acceptance of deliverables and the process for remediation of non-compliant deliverables, so ensure you understand and follow any contractual obligations and processes.
If you fail to address the non-performance with the supplier, it could inadvertently cause a waiver of that conduct/ breach (see section 2.3 Unintentional variation or waiver through conduct).
| Delivery and acceptance Delivery refers to physically receiving the contracted goods or services from the supplier. Acceptance is the term used to describe how the procuring entity determines whether the goods or services meet the contract requirements, and formally accepts them. Generally, the contract will set out the process for acceptance. General process for acceptance 1. Check appropriate risk management measures are in place, for example, physical security and storage of goods and whether any insurance arrangements need to be put in place. 2. Ensure the supplier has access to any facilities needed to deliver the goods or services. 3. The supplier should provide the contract deliverables on time, within budget and compliant with contract specifications. This may include providing formal documentation and supporting evidence (eg results of internal acceptance testing showing the goods or services meet the contracted requirements). 4. Inspect goods or services or review against the standards or specifications detailed in the contract - your contract will include what you need to do for acceptance (eg certification that deliverables meet a certain standard, acceptance testing, spot audits or verification by an independent assessor (see CPRs paraqraph 7.26). For services, you may need to assess against contractual performance measures such as service levels and compliance with reporting requirements. If you are receiving your goods or services by staged delivery, ensure the full quantity is ultimately delivered. 5. Decide whether to accept or reject the goods or services within contractual timeframes. In some contracts, if you do nothing then the goods or services will be deemed as accepted after a certain period. 6. If goods or services do not meet contractual standards, follow processes set out in your contract. In most cases, this involves notifying the supplier and explaining the reasons for the rejection. The supplier must then remediate the goods or services, generally, at their own expense. It is easier to ensure goods or services are not faulty and meet contract specifications at the delivery stage, rather than later in the process. |
| Late, incomplete or unsatisfactory delivery If you receive goods or services that do not meet the contract standard, you should follow the procedures set out in the contract to resolve the issue. You may need to seek legal advice to understand the Australian Government's rights under the contract. Avoid doing or saying anything that might have a negative impact on the Australian Government's rights (eg do not pay invoices for incomplete, undelivered or unsatisfactory goods or services) until you have sought legal advice. |