The Bridge over Troubled Waters non-profit mental health organization is a contractor for the Local Jefferson Mental Health Board. Such a relationship is similar to that of an agency, where the organization, Bridge, is responsible for implementing the goals of the Mental Health Board. The Mental Health Board is the principle in this case since it is responsible for handling the financial costs of implementing its plans, and is also involved in the decision-making process. As such, Bridge over Troubled Waters is only responsible for ensuring that the requirements set by the Mental Health Board are met. Such requirements include the budget decisions involving the reduction of inpatients with the aim of minimizing operational costs (Law, 2019).
Considering the relationship between these two organizations, a contract between the two firms would require a statement of obligations, where Bridge over Troubled Waters would clarify its interests behind its decision to enter into the contract, which is mostly for financial support and funding. The Mental Health Board, on the other hand, would clarify its interests in the contract, which involve improving mental health treatment in the region through providing funding to mental health institutions.
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Moreover, the contract between these two organizations would need to include a statement of powers, where each party would include its powers over the projects in which they will be working together (Turner, n.d). For example, Bridge over Troubled Water could claim autonomy in operational decisions involving purchase decisions and other procurement procedures, while the Board could have rights to dictating the types and number of patients taken in by each institution.
Conclusively, these two organizations are in a mutually binding contract where each party has consideration, interests and a stake in the outcome of the project. The two organizations should, therefore, focus on ensuring each of them is well represented in the contract in order to ensure the efficiency of their operations during that fiscal year.
References
Law, J. (2019, August 13). The Fundamentals of Contract Management. Retrieved from https://www.businessnewsdaily.com/4813-contract-management.html
Turner, B. (n.d.). Contract Management Process – Key Points and Activities. Retrieved from https://www.purchasing-procurement-center.com/contract-management-process.html
