Enhance planning and preparation

Oct 13, 2025 by vinooalluri.com 116 views

The Responsibility of Directors of Goods and Services Provider Companies related to Delays in Implementing Goods and Services Procurement Contracts (Study of PT. Cici Rokan Mulia)

Introduction

As a company, not only do directors have responsibilities to the company and shareholders, but also to third parties who have a legal relationship with the company. One of the most important legal relations is the contract for procurement of goods and services. In this contract, there are three main parameters that are often used as a reference in procurement activities: budget, quality, and schedule. If the contract is not in accordance with the specified schedule, then this can cause a serious delay. In this context, it is essential to discuss the responsibilities of the Board of Directors towards the delay in the implementation of the goods and services procurement contract.

Factors Causing Delays

Based on studies conducted at PT. Cici Rokan Mulia, there are several factors that cause delays in the implementation of the contract. Among others are:

Kahhar State (Force Majeure): Unexpected situations, such as natural disasters, which prevent the implementation of the contract.
Intovable equipment: Lack of construction tools needed at the project site hinders the work process.
Lack of expert workers: Unavailability of skilled and competent workers to complete certain tasks is also one of the causes of delay.
Poor communication: Inadequate communication between the parties involved can lead to misunderstandings and delays.
Inadequate planning: Insufficient planning and preparation can result in delays and inefficiencies.

Accountability of the Board of Directors

Directors of the Company have significant legal responsibilities in terms of contract implementation with third parties. They are required to control and oversee the implementation of the contract to be in accordance with the scope of work, costs, time period, and other provisions that have been agreed upon. If there is a delay, the Board of Directors must take proactive steps to solve the problem through:

Mediation: Finding a middle ground between the parties involved to reach a new agreement.
Renegociation: Change the contract provisions to adjust to existing conditions so that the project can be continued without problems.
Risk management: Identifying and mitigating potential risks that may cause delays or inefficiencies.
Monitoring and evaluation: Regularly monitoring and evaluating the progress of the project to identify potential issues and take corrective action.

Imbalance in the Contract

One thing that needs to be noted is that the position of the parties in the procurement contract of goods and services is often unbalanced. Usually, this contract is a standard contract that is designed unilaterally by service users, so that the service provider does not have enough strength to negotiate. We recommend that service users no longer use standard contracts as a form of engagement. Such contracts are often contrary to legal and contract principles, especially the principle of balance.

A contract of procurement of goods and services will run better if both parties can apply the principle of balance and follow other normative provisions. This approach not only creates a conducive contract environment but will also produce a mutually beneficial solution in dispute resolution.

The Importance of Fair Contract Principles

Fair contract principles are essential in ensuring that the procurement contract of goods and services is implemented effectively and efficiently. Some of the key principles include:

Transparency: Clear and transparent communication between the parties involved.
Fairness: Both parties should have equal opportunities to negotiate and agree on the terms of the contract.
Balance: The contract should be balanced and fair to both parties.
Good faith: Both parties should act in good faith and fulfill their obligations under the contract.

Conclusion

The responsibility of the company's directors in implementing the contract for procurement of goods and services is very important. By understanding the factors that cause delays and applying fair contract principles, the company can reduce the risk of delay and increase the effectiveness of the implementation of the contract. Therefore, it is essential for the Board of Directors to ensure that they not only fulfill their legal responsibilities, but also create a healthy and mutually beneficial relationship with the third party involved in the contract.

Recommendations

Based on the study conducted at PT. Cici Rokan Mulia, the following recommendations are made:

Improve communication: Regular and effective communication between the parties involved is essential in preventing delays and ensuring the smooth implementation of the contract.
Enhance planning and preparation: Insufficient planning and preparation can result in delays and inefficiencies. Therefore, it is essential to improve planning and preparation to ensure the successful implementation of the contract.
Apply fair contract principles: Fair contract principles are essential in ensuring that the procurement contract of goods and services is implemented effectively and efficiently.
Monitor and evaluate: Regularly monitoring and evaluating the progress of the project is essential in identifying potential issues and taking corrective action.

By implementing these recommendations, the company can reduce the risk of delay and increase the effectiveness of the implementation of the contract.
Frequently Asked Questions (FAQs) about the Responsibility of Directors of Goods and Services Provider Companies related to Delays in Implementing Goods and Services Procurement Contracts

Q: What is the main responsibility of directors of goods and services provider companies?

A: The main responsibility of directors of goods and services provider companies is to ensure that the contract for procurement of goods and services is implemented effectively and efficiently, and that any delays or issues are addressed promptly.

Q: What are the common factors that cause delays in the implementation of goods and services procurement contracts?

A: The common factors that cause delays in the implementation of goods and services procurement contracts include:

Kahhar State (Force Majeure): Unexpected situations, such as natural disasters, which prevent the implementation of the contract.
Intovable equipment: Lack of construction tools needed at the project site hinders the work process.
Lack of expert workers: Unavailability of skilled and competent workers to complete certain tasks is also one of the causes of delay.
Poor communication: Inadequate communication between the parties involved can lead to misunderstandings and delays.
Inadequate planning: Insufficient planning and preparation can result in delays and inefficiencies.

Q: What is the role of the Board of Directors in addressing delays in the implementation of goods and services procurement contracts?

A: The Board of Directors has a significant role in addressing delays in the implementation of goods and services procurement contracts. They are required to control and oversee the implementation of the contract to be in accordance with the scope of work, costs, time period, and other provisions that have been agreed upon. If there is a delay, the Board of Directors must take proactive steps to solve the problem through:

Mediation: Finding a middle ground between the parties involved to reach a new agreement.
Renegociation: Change the contract provisions to adjust to existing conditions so that the project can be continued without problems.
Risk management: Identifying and mitigating potential risks that may cause delays or inefficiencies.
Monitoring and evaluation: Regularly monitoring and evaluating the progress of the project to identify potential issues and take corrective action.

Q: What are the consequences of not addressing delays in the implementation of goods and services procurement contracts?

A: The consequences of not addressing delays in the implementation of goods and services procurement contracts can be severe, including:

Financial losses: Delays can result in financial losses due to increased costs, lost productivity, and other expenses.
Damage to reputation: Delays can damage the reputation of the company and its directors, leading to loss of business and other opportunities.
Legal consequences: Delays can result in legal consequences, including lawsuits and other penalties.

Q: How can companies prevent delays in the implementation of goods and services procurement contracts?

A: Companies can prevent delays in the implementation of goods and services procurement contracts by:

Improving communication: Regular and effective communication between the parties involved is essential in preventing delays and ensuring the smooth implementation of the contract.
Enhancing planning and preparation: Insufficient planning and preparation can result in delays and inefficiencies. Therefore, it is essential to improve planning and preparation to ensure the successful implementation of the contract.
Applying fair contract principles: Fair contract principles are essential in ensuring that the procurement contract of goods and services is implemented effectively and efficiently.
Monitoring and evaluating: Regularly monitoring and evaluating the progress of the project is essential in identifying potential issues and taking corrective action.

Q: What is the importance of fair contract principles in preventing delays in the implementation of goods and services procurement contracts?

A: Fair contract principles are essential in preventing delays in the implementation of goods and services procurement contracts. They ensure that both parties have equal opportunities to negotiate and agree on the terms of the contract, and that the contract is balanced and fair to both parties. Some of the key principles include:

Transparency: Clear and transparent communication between the parties involved.
Fairness: Both parties should have equal opportunities to negotiate and agree on the terms of the contract.
Balance: The contract should be balanced and fair to both parties.
Good faith: Both parties should act in good faith and fulfill their obligations under the contract.

Q: How can companies ensure that their directors are aware of their responsibilities in preventing delays in the implementation of goods and services procurement contracts?

A: Companies can ensure that their directors are aware of their responsibilities in preventing delays in the implementation of goods and services procurement contracts by:

Providing training and education: Providing training and education to directors on their responsibilities and the importance of preventing delays in the implementation of goods and services procurement contracts.
Establishing clear policies and procedures: Establishing clear policies and procedures for the implementation of goods and services procurement contracts, including procedures for addressing delays and issues.
Monitoring and evaluating: Regularly monitoring and evaluating the progress of the project to identify potential issues and take corrective action.
Encouraging open communication: Encouraging open communication between the parties involved to prevent misunderstandings and delays.