Team:Finance/Procurement requirements

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This page is under revision and is not final yet.

This is a summary of additional procurement requirements for MCH2021 in light of COVID19. When a contract is drafted, add these requirements to the contract. These requirements are here to protect the organization from the increased risks of cancellation due to the COVID-19 pandemic. There is no insurance available for cancellation due to a pandemic. This puts the organization and suppliers on a tight spot. Using these measures will help creating confidence for both the event and suppliers.

The procedure for contracts themselves has not changed. The board still needs to review and sign before they are valid.

all contracts ±500 and up (five hundred euro)

Cancellation without costs due to pandemic

What: Add a cancellation requirement. If any Dutch government or authoritative party (veiligheidsregio e.d.) decides no event is allowed due to any pandemic or pandemic related situation. In this case the event is cancelled and no payment is due.

If a supplier is required to spend money/effort before the event, the board is required to know what and when, and will have to acknowledge this in writing before payment is made for these services.

Why: we're obliged to refund all visitors. There is no insurance anymore for canceling due to a pandemice: this puts us and suppliers in a tight spot.

all contracts ±5000 and up (five thousand euro)

Bank guarantee

What: require a bank guarantee (bankgarantie). Per contract a date and time will be negotiated when payment is due. If a contract needs to be paid just prior to the event (a few weeks) it's not always required to have a bank guarantee. Check with finance to verify. We prefer paying _after_ the event, at least the larger sum.

Why: This requirement stems from the idea that suppliers can go bankrupt due to COVID-19, and no goods or services will be delivered while the money is gone.

Subrogation (indeplaatsstelling)

What: require subrogation (indeplaatsstelling), taking into account the possibility that a larger supplier can go bankrupt, we can use their suppliers / sub-contractors / co-contractors and so on to still get the promised services.

Why: COVID19 adds a lot of uncertainty, by using subrogation it's possible to still get goods / services when a supplier goes bankrupt.