Overview of XYZ Construction Company and Construction Project in Dubai

MBA Assignment 1
MBA assignment
Class (Course)
Professor (Tutor)
School (University)
City and State
Date

MBA Assignment 2
Executive Summary
This report is an overview of the XYZ Construction company as they plan to engage a
construction project in Dubai which they were awarded through a tender process. The report
starts by providing an explanation of the status of XYZ company and the projects it carries out.
Moving from that, the paper explains the nature of the construction project in Dubai which it
would be executing. It is from here the report demonstrates the scope of the work by analyzing
the types of contracts and the execution plan. An important part of this project is the discussion
of the legal framework in the UAE, where the paper discusses the source of law, the legal
requirements, and remedies for the breach of contracts. Also, the paper discusses an important
concept of agency law which would allow XYZ to manage the project through its managing
director at UAE. Lastly, this report finishes by looking at the issue of Free Trade Agreement
between Australia and UAE, and the specific regulations that apply construction projects in the
country.

MBA Assignment 3
Introduction
XYZ Construction Company is a multi-disciplinary construction firm that offers
Engineering Construction and Project management services to its clients. XYZ prides itself for
the dedicated services it provides to both individuals and organizations seeking construction
services. The company provides its services to clients dealing with power distribution
organizations, oil, gas and pipeline firms, municipalities, public works, commercial, and
residential requirements. We operate in a wide area that encompasses building technology,
Architectural, Civil & Engineering solutions. While executing our work, we work closely with
our customers to ensure that there is an accurate interpretation of drawings and specification as
we endeavor to provide our clients with a solution that matches their needs.
The Business opportunity
On 10th April 2019, XYZ was awarded a project through a tender process by a Dubai
company that intended to construct a hospital that was to be on a six-story building. One month
before, the client, ABC had advertised a tender for this project requiring either a local or
international firm that does design-and-builds projects. It was this time when we applied and was
awarded the project. The hospital was proposed to in area 15KM from Dubai. The owner
intended to construct the hospital on flat land which was to cover an area not exceeding a quarter
of the land which was approximately 205,850 m2. The architectural plans as stated on the tender
included a basement, four stories, a ground floor, and a basement.
Principles of Contracts
The main types of contracts in construction work are lump-sum or fixed contracts, cost-
plus, time and material, and the unit price (Dykstra, 2018, p. 181). In our case, ABC needed a
lump-sum or the fixed price contract which is a single price work for designing and execution.

MBA Assignment 4
Even if it is a lump-sum contract, this price is usually be paid in installments as the work
continues. In addition, the project follows a procurement method Design-Build managed through
the Fédération Internationale des Ingénieurs-Conseils (FIDIC) 2017 SILVER BOOK. According
to (Dykstra, 2018, p. 181), a lump sum contract is mainly used where the owner/owner intends to
have the maximum assurance of the costs at the outset. This arrangement also helps the
contractor come up with fixed sum since all the work is defined. Besides, lump-sum contracts are
mainly used in design-build procurement method. In (Goh Eng Lee Andy v Yeo Jin Kow, 2016),
the High Court reiterated that design and build contracts are lump-sum arrangement unless where
the parties expressly introduce contrary terms. Another advantage of lump-sum contracts is that
the contractor company that is providing work is at a better chance of benefiting from the
increased profit where the actual costs of the project go below the estimated costs. As a norm, the
lumpsum contracts are calculated on an estimated higher value which helps the contracting
company to be on the safe side.
Apart from having the lump-sum contract, the choice of FIDIC and the SILVER BOOK
arrangement was helpful as it would allow us to take the total responsibility for designing and
constructing the facility with little owner’s involvement. According to (Baker et al., 2013, sec.
2.24), a Silver Book is a two-party lump-sum contract which FIDIC offers the conditions suitable
in the management of turnkey projects such as power plants, factories or similar facilities where
the parties require a higher level of certainty of the entire price. The advantage of using FIDIC
Guidance is the format contains 20 Primary clauses which are a key for the management of
construction project (Allen, 2015). The FIDIC format is useful in that it anticipates all the issues
that arise within the construction and offers guidance for each. For example, it has provisions for
risk allocation, errors, contract price, payment and dispute resolution among others.