CITYWIDE CONTRACT
TRAINING
Presented By:
Office of the City Attorney
Comptroller’s Office – Purchasing
Affirmative Action Division – DCR
City Clerk
May 21-22, 2008
Topics for Today
Nature and Importance of Contracts
Choosing Your Contract
Contract Authorization – MGO Sec. 4.26
APMs Governing Contracts & Purchasing
Purchasing Division and Procedures
Purchase of Service “POS” Contract Form
Public Works and Other Special Contracts
Topics, cont.
Execution of Contracts
Role of DCR, Comptroller, Clerk
Contract Routing and Database
Practical Tips
Questions (Always Welcome!)
NOTE: May be some repetition.
Nature and Importance of
Contracts
What is a Contract?
“An agreement, upon sufficient
consideration, to do or not to do a
particular thing.”
“A promissory agreement between two or
more persons that creates, modifies or
destroys a legal relation.”
Black’s Law Dictionary.
Nature and Importance of
Contracts, cont.
Traditional elements of a contract:
Offer: A proposal from one party or
parties.
Acceptance: Agreement to the proposal by
the other party or parties.
Consideration: Something of value passing
between the parties; courts now accept
mutual promises as consideration.
Nature and Importance of
Contracts, cont.
Contracts define the legal obligations
and duties of the parties.
Contracts define the rights of the
parties in the event of a breach of
contract.
Entire legal codes exist to define
contractual relationships, e.g., the
Uniform Commercial Code.
Nature and Importance of
Contracts, cont.
The more clarity in a written contract, the
fewer disputes.
The more contingencies that can be covered
in a written contract, the fewer disputes.
NO CONTRACT is ever completely clear or
covers all contingencies.
Questions?
Choosing Your Contract
Plan Ahead!
Ask critical questions:
What do you want to accomplish?
When do you want to do it?
Who are the parties? (NOTE: The City of Madison,
not an individual department, is the party 99.44%
of the time).
Who will sign the contract? (NOTE: 99.