Conditions Of Contracts, Procurement, Standard Form Of Contract And Dispute Resolution

This study material provides detailed information on conditions of contracts, procurement methods, standard form of contract, and dispute resolution. It covers topics such as different types of torts in the construction phase, remedies in tort, and defense strategies. It also discusses the provisions of JCT SBC/Q 2016, NEC4 ECC, and FIDIC Red Book for managing delays caused by employers and contractors. Additionally, it explores the golden principle of FIDIC and factors for selecting types of contracts.

Conditions Of Contracts,
Procurement, Standard Form
Of Contract And Dispute
Resolution

Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Appropriate procurement methods .............................................................................................1
Types of contracts to be adopted in the project with adequate justification...............................2
QUESTION 2...................................................................................................................................2
Different types of tort (civil wrong) in the construction phase of the project. Evaluate the
types of remedies in tort and the defence....................................................................................2
QUESTION 3...................................................................................................................................4
Different provision formed by JCT SBC/Q 2016, NEC4 ECC and FIDIC Red Book (1999 or
2017) for managing the delay caused by employers and those that are the fault of the
contractor. Critically evaluate on the basis of relevant clauses...................................................4
QUESTION 4...................................................................................................................................5
Discuss one of the golden principles of FIDIC ‘the duties, rights, obligations, roles and
responsibilities of all the contract participants must be generally as implied in the general
conditions, and appropriate to the requirements of the project’..................................................5
Critically evaluate three factors for the selection of types of contract........................................6
QUESTION 5...................................................................................................................................7
Evaluate any ‘Multi-tiered Dispute Resolution Mechanisms’ stipulated in the JCT SBC/Q
2016.............................................................................................................................................7
Discuss the principles of NEC contracts.....................................................................................7
Discuss the contribution of Donoghue and Stevenson to the tort of negligence........................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Contract and procurement are explained as one of the most crucial topic which simply
explains about the method which is required at the time of completing the process of purchasing
any of the good and services. Here, contract law plays the crucial role that how any of the work
is needed to performed fort the purpose of completing the process of procurement. In any of the
procurement process, it is essential to understand that all of the guidelines must be completed for
the purpose of completing any of the project or planning. In context of the file , there are various
topics which will be discussed in detail which will allow to understand the concept of
procurement, contract law. Also, different procurement process with its effect. Law of tort will
also be discussed within the file which will allow to understand the concept in detail.
QUESTION 1
Appropriate procurement methods
Procurement is the process in property development which is a simple concept where planning
and thoughts are required before placing any of the contract to the builder. This is one of the
most important concept which plays the crucial role for the investor. There are number of
methods in procurement and those methods are explained below in detail.
 Best Value IFB: This is the procurement method which is necessary to be used only in
that respective situation where ideas and thoughts are clear and has been defined in
identical manner. Here, goods and services are available from more then one source. The
main advantage in it is that awards is always provided to the best bidder for the value
which is one of the simplest process (Levin, 2016). On the other side, it do not
encourages any of the innovation in it which is a negative side of it.
 RFQ (Request for Quotations): In this types of procurement method, selection is
always made on the basis of qualification carried by the professional where they should
be able to follow the codes. It will be necessary to understand that it emphasizes on the
competency of the contractor who has introduced the proposal. The negative part of RFQ
is that contractor are always selected before the price has been negotiated.
 RFP (Request for Proposals): The method of procurement where vendor are required to
deliver the innovative ideas is known as Request for Proposals. The best part of this
respective method is that it encourages the innovations which allows the customized
1

proposal suggestions. But, this types of process are generally time consuming in nature
and even they are complex too.
Types of contracts to be adopted in the project with adequate justification
There are basically three types of contract which can be helpful at the time of deciding
procurement process. Those contract are: Fixed Price Contracts (FP): This types of contract are helpful in that respective phase
where it is found that both the involved parties are able to understand that situation and
scope. This types of contract are important in that respective situation where idea and
scope of the project has been already determined. Cost-Reimbursable contracts: This form of contract are essential which can plays the
supportive role at the time of procurement. Here, it will be essential to understand that
cost mainly incurs at the time of expenses during the process of procurement.
 Time and Material Contract: It will be important to understand for the buyer that in this
form of contract they are required to do payment on the basis of labour cost for there time
involved (Types Of Procurement Contracts, 2017). Secondly, payment is required to be
paid for the material which are essential at the time of constructions.
After having the detail analysis on the case and requirement of Jim Akis Khan, he must
use Request for proposal method of procurement which is essential in the situation where
innovation ideas are needed by the buyer or investor. For this types of procurement method, it
will be essential that time and material contract should be used. It is because there will be higher
possibilities that better quality of products and services can be used during the course of
construction.
QUESTION 2
Different types of tort (civil wrong) in the construction phase of the project. Evaluate the types of
remedies in tort and the defence
Whenever any of the construction company enters into the contract they must give focus
on not performing any of the tort as it can create huge issues for the business organisation. Tort
is simply explained as the process where people do not perform there part of work as per
required manner (Bidua, 2018). It is necessary to understand that in this respective situation,
innocent part has the option to take legal action against the involved party. In this types of case,
2

there are different elements which are needed to be proved. Those elements are legal duty of
care, breach of the duty, cause and damages. The types of tort is always different which is
usually based on the department where it has been performed. As per the requirement of
question, the different types of civil wrong within the construction phase of project are:
 Worker get injured because of less safety equipments.
 Construction didn't get completed on time (McConnell and Clevenger, 2018).
 No timely payment to employees or workers.
 Appropriate material were not being used at the time of construction.
Theses are some of the most important tort which is needed to be focused as there is high
possibilities of occurrence of this form of tort. But, if in case, this types of tort takes place then in
that respective situation action can be taken for the purpose of claiming the damages. The
different types of remedies which is available in this respective situation are:
 Worker get injured because of less safety equipments: It is one of the mistake which
is mainly performed by the side of builder. It is there responsibilities to provide all of the
safety equipment to the employees working within the premisses of a construction. As
employees has got injured in this respective situation, so it will be important to
understand that all of the liability will be upon builder. Also, medical charges will be
required to be paid by the company and secondly, wages are to be paid because injury has
taken place within the premisses of a organisation. Monetary compensate and
imprisonment to defaulter can be seen within this case.
 Construction didn't get completed on time: This is one of the most common tort which
can be seen within the premisses of construction filed. This situation occurs whenever
delivery of services is not completed on time. Here, it is necessary to identify about the
main reason behind the default. Here, innocent party will get the option to claim for the
damages which they has to suffer just because of delay in work. Monetary compensate is
only applicable in this situation (Trung and Hai, 2020).
 No timely payment to employees or workers: It is also the problem of tort as
employees do not get the payment on specific time period. This types of situation creates
huge problem for defaulter party because legal action can be taken in this respective
situation. Also, payment is to be paid to every single employees on specific time period.
Only, monetary damages can be claimed in this case.
3

 Appropriate material were not being used at the time of construction: If in any of the
situation this types of problem occurs where material were not used as per the
requirement the in that particular circumstances, it will be the responsibility of
constructor to give statement about the default. This are those default, were legal actions
can be taken upon the defaulter and even damages can be claimed. Only damages can be
recovered in this types of situation.
QUESTION 3
Different provision formed by JCT SBC/Q 2016, NEC4 ECC and FIDIC Red Book (1999 or
2017) for managing the delay caused by employers and those that are the fault of the
contractor. Critically evaluate on the basis of relevant clauses.
In present scenario, different clause and laws are included which allows to understand
that how any of the work is needed to be performed. The different laws are formed because to
make clear about the basis requirement in any of the work. If in any of the situation authorised
party fails to perform there part of work then in that respective situation legal actions can be
taken. This form of delay are mainly performed in those respective condition where performing
the task is not an easy thing. Below, there is the discussion about various laws and regulations
which has been formed by JCT SBC/Q 2016, NEC4 ECC and FIDIC Red Book (1999 or 2017).
Time and Delay Provision in JCT: It is the most important provision which is needed to
be considered by JCT because there are number of situation where work get delayed. Here,
addition time is provided to the contractor where they are needed to fix the new new date of
completion of the work. But legal action can be by the party who is innocent in this respective
case. But, exception are there if delay occur due to unexpected event such as weather, land
issue, notice of delay with mutual understanding and many (Whitaker, 2016). This is necessary
to be formed because it will allow both the party to mark themselves safe from unexpected
damages.
According to JCT SBC/Q 2016, NEC4 ECC and FIDIC Red Book, they had formed the
clause where if any of the delay occurs, then in that respective situation, it will be important to
decide new date of completion of work with mutual understanding. It is necessary that whenever
new date is introduced, the work should be completed on time for effective result. The clause
4

which has been introduced by JCT also states that delay can even occur in that respective
situation where variation or omission of law and regulation can be seen.
There are some of the clause which has been mentioned if any of the party makes delay
by intention.
Contractor's Cause Delay: If in any of the situation, contractor fails to perform their
part of work, then in that respective situation they will not be able to claim extension for delay.
Looking at the case, it will be the responsibility of contractor to pay liquidate damages to
employer. The delay from the side of contractor is generally performed in that respective
situation where they are unable to do proper planning, poor management and many more.
Employer’s Cause Delay: The delay from the side of employer takes place only in that
respective situation where there is lack of fund. The second reason is act of employer or the
person hired by them to take legal decision (Jagannathan and Delhi, 2019). Here, employer will
have to give wages amount to the worker working for the construction of a building.
If in case delay has been done by the neutral side, then it will be necessary for employer
and contractor to share risk involved within it.
QUESTION 4
Discuss one of the golden principles of FIDIC ‘the duties, rights, obligations, roles and
responsibilities of all the contract participants must be generally as implied in the general
conditions, and appropriate to the requirements of the project’.
FIDIC GC is based on equal distribution of fair work with inclusion of risk and rewards
between employer and contractor. It is one of the important golden principles which plays the
crucial role for employer and contractor because there will be minimum chances of problem
between involved parties. There are five different golden rule in it among which one has been
discussed in detail.
“The duties, rights, obligations, roles and responsibilities of all the contract
participants must be generally as implied in the General Conditions, and appropriate to the
requirements of the project”.
It is among one of principle which explains that roles, duties, obligation of a contract
participants generally do not changes as remain almost same as explained within GCs. But, it is
essential that roles, duties and obligation should be parallel to project. It is one of the necessary
5

element required because it will allow to decide the appropriate features of the project. The best
example of Golden rule one states that it is the obligation of employer to give payment on time
by not focusing on any of the issues which they faces during the project. In simple words, the
GP1 states that involved party must perform there part of work as per the requirement of
situation and it will be necessary for them to ensure that in any of the situation they will not take
those decision which can break the terms and condition of the contract. Here, proper skills are
needed to be used at the time of making any of the decision.
Critically evaluate three factors for the selection of types of contract
In any of the project, it is necessary to understand that work should be performed as per
the requirement of law where laws and regulation should be considered. But, before entering into
the contract, it will be essential to understand about the contract and its selection. In any of the
situation, selection of appropriate types of contract can play the crucial role. Different types of
selection of contract are discussed below.
Price Competition: In any of the contract, effective form of price competition helps to
obtain the result in realistic pricing. When it comes to fixed price contract is ordinarily in the
interest of a contract.
Price Analysis: While entering into the contract of procurement, it is necessary to
understand price should be analysed in best possible manner for the purpose of obtaining the
result on specific time period. Price analysis can easily allow to understand about realistic
pricing standards.
Type and complexity required: In this types of contract, it becomes necessary for
contracted parties to determine about the complexity of the project (Factors in selecting contract
types, 2020). Here, proper research is required before entering into the contact for the purpose of
completing the project.
It can be easily determined that there are different ways through which contract can b
formed for procurement. But, it will be essential each and every factor must be evaluated in
beginning so that desire result can be achieved. If in any of the situation, contracted parties fails
to do so then there will be high chances that problem might occur through which achieving the
target will not be the easy task.
6

QUESTION 5
Evaluate any ‘Multi-tiered Dispute Resolution Mechanisms’ stipulated in the JCT SBC/Q 2016.
Multi-tiered Dispute Resolution Mechanisms is a additional clauses which merge the
ADR process for the process of resolving the disputes in best possible manner. This process has
been composed with the help of negotiation, mediation, expert determination and arbitration too.
This types of dispute resolution are included in those of relations which are created for
longer time period. It will directly give the option to take certain steps through which any of the
dispute can be resolved. The nature of Multi-tiered Dispute Resolution Mechanisms is almost as
similar as arbitration process. While involving within the work of procurement, there are lots of
disputes which can be easily seen and in that respective situation it will be necessary to take help
of Multi-tiered Dispute Resolution Mechanisms which can bring out the best way to deal with
the problem. There are number of benefits within this process which can be effective as it
provides the cooling-off period which can easily allow the parties to reassess to the condition. It
allows to maintain relation for long time period which can be result oriented. But, there some of
the drawbacks as well which can be identified within Multi-tiered Dispute Resolution
Mechanisms (Marathe and et. al., 2017). It is one of the risky process where number of limitation
can be found such as if period is set to expire just before the contractually mandated negotiation
period. Here, claim can be barred. In short, there are positive as well as negative side of Multi-
tiered Dispute Resolution Mechanisms.
Discuss the principles of NEC contracts
The NEC contracts are the form of contract which plays the essential role at the time of
entering into the construction contract. The use of contracts under NEC is increasing day by day
which is allowing to obtain a positive result. These form of contracts mainly focuses on three
different form of principles and they are clarity, flexibility and stimulus. All of this principles are
relevant according to different form of contract and there process of formation (NEC Contracts -
are they right for you, 2018). This form of principles are essential too because it simply allows to
understand that when and how any of the decision is required to be taken within the contract.
Discuss the contribution of Donoghue and Stevenson to the tort of negligence
The case between Donoghue v Stevenson has a great importance for tort law. It is
because it has simply allowed to understand about the importance of following the law within the
7

business premisses. The ruling in this respective case has developed the civil law, tort of
negligence and obliged businesses for the purpose of observing the duty of care which they owns
towards their customers (CASE STUDY: DONOGHUE V. STEVENSON 1932). They had
developed the concept in which it was very clear for all of the business that in any of the
situation, business is not allowed to breach there duty which they has been given for the
customers.
CONCLUSION
After having the detail analysis on the case, it can be easily concluded that procurement is
one of the important concept whenever parties develop the plan of construction. There are
different types of contract and as per the willingness parties can decide the way they enter into
the contact. Different form of provisions has been formed by provision formed by JCT SBC/Q
2016, NEC4 ECC and FIDIC Red Book for the purpose of managing the situation where delay
occurs within the completion of project. Also, Golden Principle rules must be considered for
meeting out the requirement of a project.
8

REFERENCES
Books & Journals
Levin, P. ed., 2016. October. Construction contract claims, changes, and dispute resolution.
American Society of Civil Engineers.
Bidua, A. K., 2018, November. Use of FIDIC 2017 as Standard Form of Contract for EPC
Projects in Oil and Gas Industry. In Abu Dhabi International Petroleum Exhibition &
Conference. Society of Petroleum Engineers.
McConnell, W. and Clevenger, C. M., 2018. Frequently Disputed Sections within the AIA
A201–2017 General Conditions. Journal of Legal Affairs and Dispute Resolution in
Engineering and Construction. 10(4). p.03718002.
Trung, N. N. and Hai, D. T., 2020. Protocol for Standard Contract Forms for projects involving
Building Information Modelling (BIM) in Vietnam. In CIGOS 2019, Innovation for
Sustainable Infrastructure (pp. 1253-1258). Springer, Singapore.
Whitaker, S., 2016. Procurement Management. In Pass the PMP® Exam (pp. 405-444). Apress,
Berkeley, CA.
Jagannathan, M. and Delhi, V. S. K., 2019. Litigation proneness of dispute resolution clauses in
construction contracts. Journal of Legal Affairs and Dispute Resolution in Engineering
and Construction. 11(3). p.04519011.
Marathe, A. and et. al., 2017. Dispute resolution and contract incentives: Perceptions of project
stakeholders. Journal of Legal Affairs and Dispute Resolution in Engineering and
Construction. 9(4). p.04517019.
Online
Types Of Procurement Contracts. 2017. [Online]. Available Through:
<https://www.scholar99.com/types-of-procurement-contracts-project-management/>
The FIDIC Golden Principles. 2019. [Online]. Available Through:
<https://www.lexology.com/library/detail.aspx?g=d667b409-bcbb-4d06-87f7-
1cd8431874b4>
Factors in selecting contract types. 2020. [Online]. Available Through:
<https://www.acquisition.gov/content/16104-factors-selecting-contract-types/>
NEC Contracts - are they right for you. 2018. [Online]. Available Through:
<https://journal.iaccm.com/contracting-excellence-journal/nec-contracts-are-they-right-
for-you>
CASE STUDY: DONOGHUE V. STEVENSON 1932. [Online]. Available
Through:<https://lawgovpol.com/case-study-donoghue-v-stevenson-1932/>
9