Module 12: Contract Management and Administration

Procurement Manual

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		Remedies

Remedies are the means by which a contractual right is enforced or by which the breach of a contractual right is prevented or compensated. When the contract is not being performed properly, or vendor performance is otherwise unacceptable, the Procurement Staff may apply such remedies as:

			Invoking liquidated damages or payment withholding provisions

			Drawing under performance security

			Terminating the contract

			Initiation of arbitration

Prior consultation with OLA, or the legal office of the Field Mission or OAH, is recommended in

deciding whether to invoke a remedy and in determining which remedies to apply.

For example, in the case of late delivery, one option would be to accept delivery and invoke a liquidated damages provision.

The Procurement Officer/Assistant shall exercise professional judgement as to the use of remedies. When considering any contractual remedy, appropriate and documented communication with the vendor is important. The vendor should be given an opportunity to provide evidence defending its performance. That evidence might relate to an excusable delay or impossibility of performance.

Remedies

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