Cert IV in Procurement and Contracting – Contract Stream – Final Activity 5 – Scenarios 5 – ATO

Consider the scenario and outline your proposed approach to resolving it.  Make reference to any relevant clauses you would expect to find in a contract (for example, Dispute Resolution, Invoicing and Payment, Warranty, Insurance etc).  Identify any issues that may require escalation.

Your IT services contractor (one of a panel with 6 other providers on it) has just phoned you to advise that 7 of the 10 specified personnel listed on their contract have left the company and started their own business providing IT services. They wants you to assure them that you will not give any work at all to the “defectors”, and they have also advised you that they are having a lot of trouble finding replacement staff as IT skills are in high demand and good staff are not easy to find. You are a little anxious as you have booked a significant amount of services to be delivered by this company over the next 2 months and it will be essential that you do not let your clients down as they are relying on the services for operational reasons. The contractor has also asked if you would be willing to relax the requirements for qualifications and long practical experience to allow them to more easily replace the staff who have left.
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