Public Prerogatives in Public Contracts
The purpose of this research is to examine the process of contracting for goods and services in the public sector. Of particular interest are the prerogative of public performance, contract changes, contract default, contract termination, and the role of contracting in the public sector.
Contracting in the public sector is a part of the purchasing function. Purchasing always involves the acquisition of goods and services. In the public sector, purchasing almost always involves the acquisition of goods and services by an organization, for consumption by the organization, in the servicing of its client group. In private-sector organizations, this purpose is also present. In these organizations, however, goods and services are more often acquired as a means of supporting a production process, as opposed to organizational consumption.
The external environment of an organization provides its reason for existence. Therefore, the purchasing function is intimately involved with the capacity of the organization to fulfill its mission, whether that mission is the servicing of welfare clients, or whether it is the manufacture of automobiles. The external environment of a public sector organization, in addition, involves both the general public, and the political funding authority for the organization. Prudent and effective use of the financial resources made available to the organization is essential to the maintenance of harmonious relations with these latter groups.
The organizational purchasing function is integral to the effective use of an organization's financial resources. Contracting is integral to the effective discharge of an organization's purchasing function. It is, thus, essential for a public sector organization to both develop and maintain high levels of productivity in its purchasing function.
Purchasing, including contracting, is one of the most critical of ...