Business Procurement and Contractual Practice

Business Procurement and
Contractual Practice
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Contents
INTRODUCTION...........................................................................................................................3
Background and Context.................................................................................................................3
Construction Engineering Management......................................................................................3
Business Procurement..................................................................................................................4
Contractual practice.....................................................................................................................4
Role of law in safeguarding interest within contractual practice................................................5
Discussion and evidence to support argument.................................................................................5
Q1. Analysis of the most appropriate procurement methods and types of contracts to be
adopted while selecting project...................................................................................................5
Q2. Discussion of the four types of torts in construction phase of project along with remedies
and defences for same..................................................................................................................6
Q3. Evaluation of the provisions in three different type of contracts including the description
of practice of their handling and implications.............................................................................7
Q4. Two parts;.............................................................................................................................8
(a). Discussion of the one golden principle of FIDIC along with duties, rights, obligations,
roles and responsibilities performed by contract participants in respect to same........................8
(b). Evaluation of the three factors for selection of different types of contracts.........................9
Q5. Three parts;.........................................................................................................................10
(a). Evaluation of the any ‘Multi-tiered Dispute Resolution Mechanisms’ (legally binding and
non-binding) stipulated in the JCT SBC/Q 2016.......................................................................10
(b). Discussion of the principles of NEC contracts...................................................................10
(c). Discussion of the Donoghue and Stevenson contribution to the tort of negligence...........11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Construction includes the activities related to building of infrastructure. This is the separate
industry and have distinct features as compared to manufacturing sector. There are many types of
contract are existing in this industry, depends upon the nature of project. The importance of
giving right contract accordance to the nature of project provides an opportunity in completion as
desired standards. Procurement is the method of arranging resources for business. This is also
known as business procurement. Consideration of legal requirements in performance of work is
importance for satisfying the society norms. Laws made government includes legal requirement
that governs the activities of contractors and all various organisations working in construction
industry (Ghahraman and Sahrayi, 2017). These laws are framed for the purpose of safeguarding
the interest of different parties involved in working practices. The main aim of this report is to
gain understanding about contractual practice and role of law in safeguarding the interest of
different associated working parties.
The aspects cover in report includes determining the most important procurement methods
and types of contracts, four different types of tort along with remedies and defences, provisions
in three different type of contracts, golden principle of FIDIC along with duties, rights,
obligations and right & responsibilities of contract participants and three factors in the selection
of the different type of contracts. Also, covers about the evaluation of ‘Multi-tiered Dispute
Resolution Mechanisms’ that stipulated in the JCT SBC/Q 2016, Principles of NEC contracts
and contribution of Donoghue and Stevenson to the tort of negligence.
Background and Context
Construction Engineering Management
The Construction Engineering and Management study provides an opportunity to
understand and gain knowledge related to oversee structure, development activities of
supportable structures and foundation frameworks in the inevitably worldwide industry of
construction. Engineers indulging in the work of construction have the main work related to
structuring and execution of the different forms of building and keeping up the framework that
workable in reality. The instruments of the exchange for the present effective development lies
with the capability having by engineer related to: solid math, science, and PC aptitudes;
inventiveness; a bent for applying science and designing techniques to take care of issues; an
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adoration for building structures, for example, spans, air terminals, structures, arenas, dams, and
interstates; an enthusiasm for working inside and outside; activity and a solid hard working
attitude; the capacity to team up with different individuals; great interchanges abilities; and a
longing to learn in a continually evolving condition (Greeff, 2019).
Development is trailed by a benefit of having board stage that includes activities related to
support, repair and retrofitting over the rest of the life expectancy of the framework resource.
Construction engineers need to deal with these so the framework proprietor, open or private
division, gets an incentive for cash spent.
Business Procurement
Procurement is the process that also known as grabbing and obtainment of important
resources related to work. Obtainment is the sourcing and buying of merchandise and ventures
for business use from an outside source. Singular organizations set obtainment approaches that
oversee their selection of providers, items, and the techniques and methods that will be utilized
to speak with their providers. Some other aspect that are covering under the scope of
procurement includes choosing sellers, building up instalment terms, key screening, choosing
and the arrangement of agreements regarding genuine buying of merchandise.
The exercise of procurement within any business including construction has three main
functions such as overseeing inward transactions for requesting and getting merchandise and
ventures, and taking care of obtainment information. This will aid in accomplishment of the two
main objectives related to augment the effectiveness of exchange stream and detailing and
supporting the seller commitment and contracting forms (Lupton, 2019).
Contractual practice
An agreement is a legitimately authoritative understanding that perceives and oversees the
rights and obligations of all associated parties. An oral agreement may likewise be known as a
verbal agreement, with "verbal" signifying "spoken" as opposed to "recorded as a written copy".
Most nations have resolutions which manage offer of merchandise, rent exchanges, and
exchange rehearses.
Contractual practice is totally related with the fulfilment of aspects and norms mentioned
within the different form of contracts that made the action valid in nature. This is one of the
important exercise that needed to take care while performing functions related to any contract
based project. This not only help in completion of work on time and as per the standards but also
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