Question

In: Operations Management

The Unemployment Program of the Government of Guava Land has several offices throughout the country, ten...

The Unemployment Program of the Government of Guava Land has several offices throughout the country, ten (10) to be specific. At these offices, all the administrative matters of the Program are administered, inclusive of payments to suppliers, payroll and Information Technology services. There are several assets and confidential data on each compound such as computer equipment, filing cabinets, personal data and several pieces of furniture.

Within recent times, there were numerous burglaries’ at a number of locations, which resulted in the loss of two million dollars’ worth in items. The Police are currently undertaking an investigation to catch the culprits.

The Minister, who is responsible for the Program, has mandated the Program to procure security services for one year at each location. After a highly competitive procurement process, Big Trouble Security Services secured the contract to provide security services at all the locations.

The Unemployment Program and Big Trouble Security Services met on several occasions to finalize the written contractual obligations. Finally, on March 31st 2019, they agreed on all the terms of the contract and both parties duly signed. One of the agreed terms is that “Big Trouble Security Services   under no circumstances will be held liable for any unforeseen acts committed by its officers during the provision of services to the Unemployment Program”

Raymond Tin Foot, a security officer from Big Trouble Security Services, was assigned to the Harlem Office for the last six months for the 6pm to 6am shift. Raymond, who is also a resident of the Harlem area, invited several of his friends during his shift, to lime and have a cook out at nights as a means of passing the time. This involves the lighting of a fire as well as occasional drinking of alcohol on the premises.

Big Trouble Security Services – Manager and Owner – Mr. Lazy, on one of his rear occasional visits to the Harlem Site, saw what was going on at this office. He quietly told Raymond “to please keep everything under control so that no one will know”.   Mr. Lazy as per contractual obligations must visit the site every night to ensure that the guards are performing their functions efficiently and effectively. However, this has never been done, because Mr. Lazy treasure his sleep very much. Additionally, Mr. Lazy did not want to take any affirmative action, because he feared that Raymond might leave the job. Indeed, Big Trouble Security Services is having problems recruiting security guards in this area and as such, if Raymond left the job there will be no available guard for this location.

One night, while Raymond was cooking and consuming alcohol with his friends, forgot to extinguish the fire. They all fell asleep and subsequently the Harlem Compound of the Unemployment Program was destroyed.

The Unemployment Program intents to sue Big Trouble Security Services for breach of contract due to the negligence of their employee Mr. Raymond Tin Foot. However, Big Trouble Security Services is seeking to rely on the following agreed term of contract, which excludes them from liability, that is – “Big Trouble Security Services   under no circumstances will be held liable for any unforeseen acts committed by its officers during the provision of services to the Unemployment Program”

Using the IRAC method advise the Unemployment Program, whether or not Big Trouble Security Services can rely on the above-mentioned exclusion clause in the face of a fundamental breach of contract due to the destruction of the compound.

Solutions

Expert Solution

The term of contract which reads as no Big Trouble Security will be held liable for unforeseen acts committed by the officers while on duty must have a reasonable side to it. It can not be so direct and simple upto the extent of an employee of the big trouble ends up putting the Unemployment Program Office ash down in fire and there will be no course of action against them.

The clause as metioned and signed while handing over the contract mustnt have had the degree of seriouness mentioned in it, reason why there is still a slightest of the chance for the Big Troubles to escape. There should be immediate complaint lodged and the security company should be entitled to penalty and ot just sit back owing to the unresonable cotract.

The security company's businees comes in to scope and existence for them being reliable and trustworthy to have a place all secured in absence of its owners. However, here, starting from an appointed guard, to the chief visiting officer, all are indulging into negligence act over days and breaching the regulation laws , for example lighting up the fire in a workplace, which is a very basic offense in the first place. The visiting officer is bound to be released of his duty on grounds of failing to suoervise the mal practices on duty. Unexpected is what Raymond continued doing over months.

Unemployment Program needs to hire an efficient lawyer who makes sure to decline and undo the service contract points that certainly a Security Agency canno frame in the first place. Their manpower service is mainly focused on how they behave towards keeping a workplace safe from danger and thus they are liable to pay for thr losses incurred and terminate the one from service with immediate effect.

Another thing, the employees should be more responsible with office datas thus to ensure security of office documents. Also the big trouble security services should be vigilant to be up to hold a better system of working and action of duty.


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