Pusuc PROCUREMENT AND DrsPOSAL OF Pusuc AssETs No.S/2017 Cap.22:23 clarifying the transaction, including price revision, warranties, contract modification, subcontracting, insurance obligations, and remedies for delay and non-performance. 79 Responsibility for contract management A procuring entity shall be responsible for administering its procurement contracts and shall establish procedures for doing so and provide the necessary resources, human and material, for effective contract administration. 80 Approaches to pricing in procurement contract (1) The price of the procurement requirement in a procurement contract shall be set(a) (b) (c) on the basis of a unit price applied to the quantities actually delivered; or on a lump-sum basis, applied to the whole or a part of the contract, irrespective of the actual quantity needed to be delivered; or in any other way that may be prescribed or authorised in standard bidding documents, general conditions of contract, or other instruments issued by the Authority. (2) No adjustment of the price of the procurement requirement shall be permitted unless it is provided for in the procurement contract: Provided that in permitting such adjustment there must be no material deviation from the procurement requirements and the evaluation of the bid on the basis of which the contract was awarded. (3) A procurement contract may include an incentive clause whereby an increased price is payable for improved delivery periods, improved quality, or cost reduction. (4) Where the time for performance under a procurement contract extends beyond a prescribed period, the contract may provide for an adjustment in the price to take into account changes in economic circumstances. (5) Where a procurement contract provides for an adjustment in the price, the contract shall stipulate clearly(a) the conditions under which price adjustment will be permitted, which conditions may include increases or decreases in the cost of materials, labour, and energy; and (b) the formulae and indices to be referred to in order to determine whether a price adjustment is permissible and to identify the amount of the adjustment; and (c) the frequency with which price adjustments may be implemented; and (d) the procedures to be followed in order to effect a price adjustment. (6) A procurement contract may provide that, when the application of price adjustment would modify the initial price by more than twenty per centum or would modify the balance owing under the contract by more than twenty per centum, the procuring entity may terminate the contract. 81 Variation of procurement contract ( 1) Any variation of a procurement contract that exceeds the maximum variations allowed in the contract documents or necessitated by any law enacted after the award shall be effected by a modification of the contract signed by both parties. (2) The parties to a procurement contract shall not agree to vary the contract if 88