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Can Agent/Bidder change manufacturer/principal after awarding/extension?

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Re: Can Agent/Bidder change manufacturer/principal after awarding/extension?

Post  RJM on Mon Mar 30, 2015 1:36 am


In principle, amendment of the contract is allowed in many jurisdictions depend on the reasons which lead to such amendments.

I believe in your case this amount to change of contract - which could be brand to be supplied (manufacturer of the product to be supplied). However, you have bring two dimensions which need clarification;

1. Are the manufacturers partner to the bidders participating in the procurement process: i.e. Joint venture??

2. Renewing/Extending the contract - this could imply that the original contract will expire and PE want to extend the contract of the supplier to supply goods under the framework contract - well, as I said above this is possible but how about quality and price? Will the supplier maintain the same quality and price? What if the product to be supplied is incompatible with other products - in case of machines/equipment?

In this case, PE need to do thorough analysis before go ahead extending the contract - what are circumstances lead to change of manufacturer? what are the risks involved? Whether the changes will continue to meet the same level of PE's operations?Will the PE continue to get Value for Money?

Raman, you may highlight more on the situation you have at hand so that we can discussed further.

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can Agent/Bidder change manufacturer/principal after awarding/ extension?

Post  uwezo on Sat Mar 28, 2015 7:21 pm

Hello Raman Lukah,
Please be informed that after contract has entered into force ( i.e signed) including framework agreement can not be changed. According to s.77(a) /PPA 2011 "A procurement contract shall not be altered or amended in any way after it has been signed by both parties unless such alteration or amendments is to the benefit of the Government or is not disadvantageous to the Government" . Changing manufacturer/principal however is not possible because in the eyes of the law "agent" enters into contract on behalf of the principal. Thus, manufacture/principal is one party to the contract and if is changed amounts to ceasing the contract/termination.


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Can Agent/Bidder change manufacturer/principal after awarding/extension?

Post  Raman Lukah on Tue Mar 10, 2015 12:00 am

When agent bid as bidder under manufacturer's authorization and win the tender from a parastatal, they supplied together and then the contract (framework contract) is renewed/extended, but agent/bidder wants to change original manufacturer/bid partner to supply? Is it permitted and how to prevent it?

Raman Lukah

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