You are the Project Manager on a project where a seller is not performing in acc

Question

You are the Project Manager on a project where a seller is not performing in accordance with the contract. Specifically the products delivered by the seller so far do not meet the acceptance testing requirements described in the contract. To make matters worse, despite negotiations, the seller is refusing to admit that it has a problem or to correct the issues. Your procurement is at a standstill. Explain your some of your available options under the Uniform commercial code before you have to resort to litigation or ADR.

Explanation / Answer

The products delivered by the seller so far do not meet the acceptance testing requirements described in the contract due to which the company is getting lots of problems related to quality which is also hurting the company brand name as well as its profits.

So it the responsibility of the project manager to ensure that seller should perform according to contract and if any assistance is needed to given to seller he should provide him immediately.

In this case the seller is refusing to admit that it has problem with its products and is not ready to correct the issues. In such cases forcing the seller to follow the contract can affect negatively. There is fair chance that seller will stop supplying the products and our procurement will stand still because we don’t have option or alternative to procure the products. Going with law can lead us into the breakdown in production which can affect our business.

In such cases the company can arrange some training sessions for the employees working for the seller company. The training will enhance the skills of employees and there is fair chance that there will be improvement in the quality of produced products.

As a project manager we can also arrange some incentive and bonus scheme to the seller company if certain level of quality is matched. As a project manager we should establish bonus scheme if a certain level of quality in product is achieved by seller this will help the seller to learn from its mistake and improve its quality standards.

Meanwhile we can also build a space for other suppliers so that the monopoly of single supplier can be eliminated and a fair competition in the business can be established. By doing this we can have an extra supplier and in case of any dispute our production will remain unaffected.

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