(Solution) CIPS PDC Royal Commission for Alula Managing Risk of Extension of Time

Solution

Adopting the definition of Lee et al. (2020), in a contract implementation, extension of time is granted in an event the work progress s impacted by excusable delaying event. Extension of time become a risk when what CIPS (2021) identify as Clin Vs Walter Lilly & Co court of appeal ruling prevails. In the ruling, it highlighted on the need for having an elaborate risk allocation in contracts which is more relevant particularly after emergence of COVID-19 pandemic. For RCU T&C’s, they note that;

Hence, as evidenced in the RCU terms and conditions, they cannot be classified as warranty since they offer a provision of the contract termination for failing to adhere to the contract T&Cs. The 15 days provided in the contract is intended to ensure that the supplier is reporting on an occurrence which lead to delaying the contract in line with the agreed timelines. There are instances where environmental issues/challenges affect the capacity of an organisation to successfully implement a contract. In Hansen (2020) report evaluating if COVID-19 outbreak is a force majeure event, these had been noted to be occurrences past the management of an organisation in their operations. Specifically, the contract terms and conditions note that;

Hence, as evidenced in the contract, occurrences such as COVID-19 pandemic which has affected majority of the contract implementation in RCU is even linked with the KSA laws. However, the PS&M teams lacks sufficient knowledge and understanding on the relevance of the Force Majeure concept….

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