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Procurement and Contract Law
Wuppe pay Customer. Capgemini UK PLC produced a tender in March which detailed their solution. It 'anticipated' a programme of 6 months duration for a cost of £750,000 based on a programme of 750 man days. Capgemini UK PLC 's tender made several modifications to JDPI's standard contract terms for IT services. Clauses 3, 4, 5, 8, 10, 11, 13 remained the same but the following clauses are modified by Capgemini UK PLC: 1 to be deleted in its entirety 2 The Customer shall provide such information, licence agreements and facilities as the Supplier considers are necessary for the Supplier to carry out the Services 5 5 6 The Contract Charges for the Services are an estimate for the extent of work involved for the Term of the Contract. 7 The Supplier shall use its best endeavours to achieve timely performance of the Services and the Supplier warrants that the Services shall be performed in a timely and professional manner by appropriately skilled and qualified people and in compliance with all applicable laws, enactments, orders regulations, standards and other similar instruments. 9 In the event that the Supplier be prevented from achieving the required Services by the anticipated completion date, the Supplier can elect to charge, at the Customer's expense, to remedy any default or non-compliance with the work or instructions or information given. 12 The Contract Programme of six months is anticipated as adequate for the performance of the Services. A formal notification of contract award was issued to Capgemini UK PLC in June. It included a reference to JDPI's standard terms of contract for IT services. Three days later, Capgemini UK PLC acknowledged the notification of award of contract by a letter reproduced below: "We have pleasure in receiving your letter of confirmation dated 24th June and confirm that work is underway on the project. We anticipate that the work will be completed by the end of December and look forward to working with you in full cooperation on the project. Please be assured that we will use our best endeavours to achieve the completion date, and you will note that work is already underway. You will note that the project is in accordance with our tender submitted to you in March." Half way through the six months period for performance of the above contract, JDPI take the decision to upgrade their computer operating system from the MSV3 to the X2014. The formal business case was approved and specifications for the work to be done are now being drawn Capgemini UK PLC has been informed of this development. However, Capgemini UK PLC argues that this represents a significant variation to the scope of the upgrading of the specific IT system originally contracted for. This specific admin system was designed to operate under the system. Capgemini UK PLC argues that all the data and their integration will need considerable re-design. It will take several additional months to realign the admin/payment system it was upgrading with the X2014 operating system and, therefore, the envisaged completion date of December will not now be achievable unless JDPI agreed to increase payment by a further £100,000. After a bitter argument JDPi reluctantly agreed to pay the increased sum in order to ensure that the job was done on time. After completing the work on time JDP i refused to make the additional payments to Capgemini UK PLC outside the original contractual price. Your Task Consider the above situation arid respond to the following issues: 2 Whose terms and conditions govern the contract? [L.0.2] 3 What does this mean to the legal rights/obligations of JDPI? [L.0.2] 6 5 4 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. [L.O.2] 5 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? [L.0.3]
Wuppe pay Customer. Capgemini UK PLC produced a tender in March which detailed their solution. It 'anticipated' a programme of 6 months duration for a cost of £750,000 based on a programme of 750 man days. Capgemini UK PLC 's tender made several modifications to JDPI's standard contract terms for IT services. Clauses 3, 4, 5, 8, 10, 11, 13 remained the same but the following clauses are modified by Capgemini UK PLC: 1 to be deleted in its entirety 2 The Customer shall provide such information, licence agreements and facilities as the Supplier considers are necessary for the Supplier to carry out the Services 5 5 6 The Contract Charges for the Services are an estimate for the extent of work involved for the Term of the Contract. 7 The Supplier shall use its best endeavours to achieve timely performance of the Services and the Supplier warrants that the Services shall be performed in a timely and professional manner by appropriately skilled and qualified people and in compliance with all applicable laws, enactments, orders regulations, standards and other similar instruments. 9 In the event that the Supplier be prevented from achieving the required Services by the anticipated completion date, the Supplier can elect to charge, at the Customer's expense, to remedy any default or non-compliance with the work or instructions or information given. 12 The Contract Programme of six months is anticipated as adequate for the performance of the Services. A formal notification of contract award was issued to Capgemini UK PLC in June. It included a reference to JDPI's standard terms of contract for IT services. Three days later, Capgemini UK PLC acknowledged the notification of award of contract by a letter reproduced below: "We have pleasure in receiving your letter of confirmation dated 24th June and confirm that work is underway on the project. We anticipate that the work will be completed by the end of December and look forward to working with you in full cooperation on the project. Please be assured that we will use our best endeavours to achieve the completion date, and you will note that work is already underway. You will note that the project is in accordance with our tender submitted to you in March." Half way through the six months period for performance of the above contract, JDPI take the decision to upgrade their computer operating system from the MSV3 to the X2014. The formal business case was approved and specifications for the work to be done are now being drawn Capgemini UK PLC has been informed of this development. However, Capgemini UK PLC argues that this represents a significant variation to the scope of the upgrading of the specific IT system originally contracted for. This specific admin system was designed to operate under the system. Capgemini UK PLC argues that all the data and their integration will need considerable re-design. It will take several additional months to realign the admin/payment system it was upgrading with the X2014 operating system and, therefore, the envisaged completion date of December will not now be achievable unless JDPI agreed to increase payment by a further £100,000. After a bitter argument JDPi reluctantly agreed to pay the increased sum in order to ensure that the job was done on time. After completing the work on time JDP i refused to make the additional payments to Capgemini UK PLC outside the original contractual price. Your Task Consider the above situation arid respond to the following issues: 2 Whose terms and conditions govern the contract? [L.0.2] 3 What does this mean to the legal rights/obligations of JDPI? [L.0.2] 6 5 4 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. [L.O.2] 5 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? [L.0.3]