Podcast
Questions and Answers
What is the withholding tax rate for technical services?
What is the withholding tax rate for technical services?
- 5%
- 10% (correct)
- 15%
- 2.5%
Who is responsible for preparing a term sheet/draft contract according to the Contract Management Procedures?
Who is responsible for preparing a term sheet/draft contract according to the Contract Management Procedures?
- User Department (N-3)
- Tenders Committee
- Contract Manager (N-5) (correct)
- Legal (N-5)
What is the consequence of commencing work prior to the review and approval of a formal contract?
What is the consequence of commencing work prior to the review and approval of a formal contract?
- Immediate payment of VAT
- Cancellation of the contract
- No consequence
- Indemnification of NNPC Limited (correct)
When should the Contract Manager request a performance guarantee?
When should the Contract Manager request a performance guarantee?
What is the VAT payment requirement when retention money is paid?
What is the VAT payment requirement when retention money is paid?
Who approves and awards contracts/variations?
Who approves and awards contracts/variations?
What is the basis of measurement for timeliness of contract initiation request?
What is the basis of measurement for timeliness of contract initiation request?
Who is responsible for ensuring compliance with established policies in contract review?
Who is responsible for ensuring compliance with established policies in contract review?
What must be adjusted from the WHT due on the next payment in respect of the certificate of work done issued?
What must be adjusted from the WHT due on the next payment in respect of the certificate of work done issued?
Who must never commence performance of work, ordering of goods, or contracting of services prior to contract review and approval?
Who must never commence performance of work, ordering of goods, or contracting of services prior to contract review and approval?
What is a prerequisite for contracts with mobilization fees?
What is a prerequisite for contracts with mobilization fees?
What is the maximum percentage of the contract sum that requires GMD's approval if variations exceed it?
What is the maximum percentage of the contract sum that requires GMD's approval if variations exceed it?
What can replace retention money held to ensure performance?
What can replace retention money held to ensure performance?
When can NNPC Limited pay a mobilization fee to a supplier or contractor?
When can NNPC Limited pay a mobilization fee to a supplier or contractor?
What is the purpose of a formal letter of acceptance and contract execution?
What is the purpose of a formal letter of acceptance and contract execution?
What does NNPC Limited pay Value Added Tax (VAT) on?
What does NNPC Limited pay Value Added Tax (VAT) on?
What follows once the winning bidder is determined?
What follows once the winning bidder is determined?
What should be available before contract award to minimize variations?
What should be available before contract award to minimize variations?
What can NNPC Limited delegate related to a contract?
What can NNPC Limited delegate related to a contract?
What is the objective of the Contract Management process at NNPC Limited?
What is the objective of the Contract Management process at NNPC Limited?
Who is responsible for updating the contract plan annually based on the progress reported at the quarterly meetings?
Who is responsible for updating the contract plan annually based on the progress reported at the quarterly meetings?
How often should quarterly contract progress meetings take place?
How often should quarterly contract progress meetings take place?
What does SBU stand for in the context of the text?
What does SBU stand for in the context of the text?
What is the purpose of appointing a Contract Manager for contracts covered by this Policy?
What is the purpose of appointing a Contract Manager for contracts covered by this Policy?
What should the contract plan detail?
What should the contract plan detail?
How often should SCM update the contract plan based on progress reported at quarterly meetings?
How often should SCM update the contract plan based on progress reported at quarterly meetings?
What is the purpose of monitoring and reviewing performance against the plan?
What is the purpose of monitoring and reviewing performance against the plan?
What is one of the objectives of Contract Management Policies at NNPC Limited?
What is one of the objectives of Contract Management Policies at NNPC Limited?
Flashcards
Withholding tax rate for technical services
Withholding tax rate for technical services
10%
Term sheet/draft contract preparation
Term sheet/draft contract preparation
Responsibility of the Contract Manager (N-5)
Work commencement before contract approval
Work commencement before contract approval
NNPC Limited indemnification (compensation)
Performance guarantee request
Performance guarantee request
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VAT payment with retention money
VAT payment with retention money
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Contract approval/award
Contract approval/award
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Contract initiation timeframe measure
Contract initiation timeframe measure
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Contract policy compliance
Contract policy compliance
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WHT adjustment on certificate of work
WHT adjustment on certificate of work
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Vendor's work commencement restriction
Vendor's work commencement restriction
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Mobilization fee contract prerequisite
Mobilization fee contract prerequisite
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Contract variation approval threshold
Contract variation approval threshold
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Retention money replacement
Retention money replacement
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Mobilization fee payment timing
Mobilization fee payment timing
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Formal acceptance of terms
Formal acceptance of terms
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NNPC VAT payment scope
NNPC VAT payment scope
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Winning bidder action
Winning bidder action
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Minimizing variations pre-requisites
Minimizing variations pre-requisites
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Delegation of NNPC related to contracts
Delegation of NNPC related to contracts
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Contract Management process objective
Contract Management process objective
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Contract plan annual update
Contract plan annual update
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Quarterly contract progress meetings
Quarterly contract progress meetings
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SBU abbreviation
SBU abbreviation
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Contract Manager role purpose
Contract Manager role purpose
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Contract plan details
Contract plan details
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Contract plan update frequency
Contract plan update frequency
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Performance plan monitoring objective
Performance plan monitoring objective
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Contract Management objectives (one)
Contract Management objectives (one)
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Study Notes
- The Contract Manager can delegate functions or tasks related to a contract but remains the responsible manager.
- Before creating a contract, considerations include needs assessment, clear procurement objectives, cost estimates, procurement method, and contract type.
- A contract should fully describe the agreement between NNPC Limited and vendors, including provisions for administration, finance, risk allocation, scope of work, termination, payment terms, work product ownership, and dispute resolution.
- Once the winning bidder is determined, NNPC Limited notifies the bidder of the award and sends a contract form and performance security requirements.
- A formal letter of acceptance and contract execution follow the bidder's acceptance of terms.
- In some cases, a mobilization fee of up to 15% of the contract value may be paid to a supplier or contractor before work begins.
- Retention money, a portion of due payments held to ensure performance, can be replaced by a bank guarantee or irrevocable letter of credit.
- To minimize contract variations, NNPC Limited ensures detailed scopes of work and accurate bills of quantities are available before contract award.
- If variations exceed a contingency provision (up to 15% of the contract sum), approval from GMD is required.
- A performance guarantee is a prerequisite for contracts with mobilization fees.
- NNPC Limited pays Value Added Tax (VAT) on goods and services provided by VAT-registered contractors, vendors, or suppliers, unless exempted or excluded.
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