Dip in Procurement and Contracting Local Government – Contract Stream – Final Activity 3 – Contract Scenarios – Scenario 2 – LGP


Before the contract can be signed you need to conduct a negotiation with the vendor to agree on the following issues:


(Where a particular brand of Goods is specified in the Contract, no other brand shall be supplied unless otherwise approved in writing by the Principal.)

  • Contractor wants this clause removed as it can be hard to get particular brands at times due to your remote location and this could stop them from complying with the contract without a lot of red tape
  • Section 23. PAYMENT

(Currently set to 30 days from receipt of correctly rendered invoice)

  • Contractor wants this changed to 14 days as they are a small business and can’t afford to carry the debt for 30 days

Use the Meeting agenda template (Final Activity Handout 3) below to create your negotiations agenda.


Scenario 2

Three months after the Tree Removal and Pruning Contract has commenced, your contract manager leaves the organisation and you are appointed to the role.

On your first day in the position, the provider contacts you to tell you they are seriously considering pulling out of the contract as they are very unhappy with how it has been managed by your organisation. Some of their complaints include:

  • Late payment on their invoices – they claim not one of their invoices has been paid on time
  • Three instances of cancellation of programmed training by the Council with less than 24-hours’ notice
  • Environmental protestors have been disrupting work on a regular basis, vandalising contractor’s equipment and abusing contractor staff

No acknowledgement of or feedback on the reports they have been providing.

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