Project Management Contract Analysis: Homework Assignment Details

This assignment analyzes a contract between IBS Laboratories and Hanna Instruments for the purchase of lab equipment. It begins by explaining the offer and acceptance phase, where IBS sought quotations and ultimately accepted Hanna's offer. The subject matter of the contract is the lab equipment and materials, with specific prices and quality standards outlined. The assignment then details the terms and conditions, including delivery timelines and quality verification processes. It also addresses the dispute resolution mechanism, specifying arbitration as the method for resolving any conflicts. Finally, the assignment discusses contract management practices, emphasizing the importance of adhering to contractual terms and conditions to avoid liabilities. The document references key legal and business texts to support the analysis.

Running head: PROJECT MANAGEMENT CONTACT
Project Management Contact
Name of the Student:
Name of the University:
Authors Note:

1PROJECT MANAGEMENT CONTACT
Contents
Offer and acceptance phase of the contract:....................................................................................2
Subject matter of the contract:.........................................................................................................2
Terms and conditions of the contract:.............................................................................................2
Disputes resolution mechanisms:....................................................................................................3
Contract management practices:......................................................................................................3
References:......................................................................................................................................5

2PROJECT MANAGEMENT CONTACT
IBS Laboratories for Research and Medical Analysis situated in Dubai, United Arab
Emirates (UAE) has entered into a contract with Hanna Instruments of UAE to purchase lab
equipment necessary for research and medical analysis.
Offer and acceptance phase of the contract:
IBS asked quotations from suppliers to supply laboratory equipment of highest quality
required for medical and research purposes. Number of quotations were received from different
suppliers of lab equipment and material. The quotation was evaluated on the basis of technical
and financial conditions. The quotation of Hanna Instruments fulfilled both technical and
financial conditions. Subsequently a contract for formulated between IBS and Hanna (Grose,
2016).
The quotation of Hanna in this case is the offer of Hanna and the subsequent selection by IBS of
Hanna’s quotation is the acceptance of the offer. Once an offer is accepted it become a binding
agreement and a contract was formed.
Subject matter of the contract:
As discussed the subject matter of the contract is lab equipment and materials to be
supplied by Hanna Laboratories UAE to IBS. The contract was entered into with specific prices
for different items of lab equipment as per the quotation of Hanna. The terms and conditions of
the contract allow IBS to reject the supply of lab equipment and materials immediately in case
the quality of equipment and material is not of the quality specified in the quotation (Knapp,
Crystal & Prince, 2016).

3PROJECT MANAGEMENT CONTACT
Terms and conditions of the contract:
The lab equipment to be supplied by Hanna to IBS shall be delivered within a period of
30 days from the date of the contract. The scientists and other experts of IBS shall conduct
necessary verification of the items to be supplied by Hanna as per the contract. The equipment
and lab materials shall be accepted only after these have been verified and found to be of
required quality by the scientists and experts. As per the contract the lab equipment and materials
to be supplied by Hanna are not subjected to cost escalation. Hence, even if the cost of these
equipment and material increase in next 30 days Hanna will not have the right to increase the
prices of the equipment and materials because it is a fixed price contract (McKendrick, 2014).
Disputes resolution mechanisms:
Often dispute arises at the time of performance a contract. There must be a standard
dispute resolution mechanism in the contract to resolve any subsequent dispute that may arise
before, during or after the performance of a contract.
In this case, i.e. the contract between IBS and Hanna Laboratories, any subsequent dispute
arising at the time of performance of the contract or before or after the performance and
formation of the contract, it shall be referred to the arbitrary. The arbitrary shall decide the rights
and obligations of the parties top the contract after considering the terms and conditions of the
contract. The part which breaches any of the provisions of the contract shall be liable to make
good the loss cause to the other party to the contract for such breach along with interest and
penalty for such loss. Thus, the parties must comply with the terms and conditions of the contract
(Russell & Bognar, 2017).

4PROJECT MANAGEMENT CONTACT
Contract management practices:
The contract management practices include the standard practices by the parties to a
contracts to ensure there is no breach of any provision of the contract act to give the other party
parties to the contract rights to rescind or terminate the contract.
The effective management practices will protect the parties to a contract whereas ineffective
management practices to the contract can increase the liabilities and obligations of the parties to
a contract. It is thus essential for the management to use standard practices to protect the parties
from contracting obligations and liabilities in a contract (Sherwood, 2016).
In this case Hanna should provide required quality materials and equipment at the quoted price to
IBS to avoid penalties and liabilities under the contract. IBS on the other hand should make
payment to Hanna as per the terms and conditions of the contract to avoid any obligations in the
contract in this regard. Fulfilment of contractual terms and conditions is the main objective of
contract management practices.

5PROJECT MANAGEMENT CONTACT
References:
Grose, M. (2016). Construction Law in the United Arab Emirates and the Gulf. John Wiley &
Sons.
Knapp, C. L., Crystal, N. M., & Prince, H. G. (2016). Problems in Contract Law: cases and
materials. Wolters Kluwer Law & Business.
McKendrick, E. (2014). Contract law: text, cases, and materials. Oxford University Press (UK).
Russell, D., & Bognar, G. (2017). The application of English law in the financial free zones of
the United Arab Emirates. Trusts & Trustees, 23(5), 480-489.
Sherwood, L. (2016). Risk diversification and the United Arab Emirates’ foreign policy. In The
Small Gulf States (pp. 154-177). Routledge.