Dilemma 4:  Appointment of supplier - Dilemma

You are Procurement Manager at Buildwell, responsible for appointing suppliers and sub-contractors on Buildwell projects. 

The contract between Buildwell and the NRA for the construction of a road project requires Buildwell to submit a list of its sub-contractors and suppliers to the NRA before appointment so that the NRA could approve their use on the contract.  The reason for this provision is to give the opportunity to the NRA to object to an appointment in the event that a sub-contractor or supplier with known financial, safety or quality problems was appointed.

You submit the list to the NRA for approval.  The project manager at the NRA approves the list except for one equipment supplier, Premium Equipment, which would supply excavators and rollers for the project.  The NRA project manager states that Premium is in financial difficulty and should not be appointed.  He requires you to appoint another supplier, Eagle Plant Hire, instead.

 What do you do? 

Consider your position, and then go to the analysis on the next page.