(Solution) CIPS Module 3 Concept of the “Battle of the Forms”
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Solution
Battle of the forms concept in contracts management is noted to “occur when organisations and a supplier having their unique terms and conditions which are different in various clauses” (Lexis, 2024). A case study organisation is provided in the CIPS Module notes of a negotiation and procurement relationship involving Butler Machine and Ex-Cell 0 which happened in 1979. A common agreement was made for supply of machines using the supplier standard teams. The area of misunderstanding in the contract was in regard to honouring the costs where the conflict headed upto court of law successfully. In managing the battle of the forms, the contract terms and conditions note that;
The terms and conditions highlight that being the buyer, ROSHN is at all times ready in managing any instance where the suppliers fails in embracing the contract terms and conditions. This is by understanding the role of the terms and conditions and align their PS&M in line with these terms and conditions.
Further, for ROSHN terms and conditions which are in place and actively being used, their management is best achieved by aligning this with KSA laws and all stakeholde3rs relations. The rationale of this us to make sure any conflict which emerge are through coordination successfully managed. At the stage of implementing the contract successfully, terms and conditions are prioritised with purchase order which highlight the entire requir3ements to be put into account. At the implementation of the contract stage, all the terms and conditions are in mutual agreement and understanding for all stakeholders positive relations. Hence, the contracts are successfully harmonised with any misunderstanding successfully managed to the benefit of the buyer and all the other stakeholders with success.
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- In this report, an evaluation of a contract by Oracle which is FIDIC guiding their construction projects in more than 67 countries globally has been carried out.
- It is evident from the analysis that there are varying contractual terms having an influence on the power and risk distribution between a supplier and an organisation.
- The rationale of this is that a contract is a legally enforceable agreement between different parties with specific acts or practices to be put into account.
- The core report areas of focus of focus has included the issues of price, quality, construction projects delivery timeline and health and safety have been put into account on the extent in which the risk and power are distributed between the contractor and the organisations.
- In the components identified, it is evident that irrespective of whether the buyer or supplier executes the risk or power.
- Through the application of different tools such as Mendelow stakeholders matrix, SWOT analysis and others, distinct issues and risks characterised by various challenges in the construction projects execution with their mitigation approaches and risks have been evidenced.
- As evidenced from the Kraljic analysis, it is evident that contractual terms have a strategic relevance in the context of Oracle informing on their holistic leveraging on the risks and powers of the contract.
- In situations where Oracle fails in leveraging on contract holistic risks power balance, warrant and also insurance cover is used.