(Solution) CIPS PDC Royal Commission for Alula Managing Risk of Increased Costs
New User Gifts
First Order Deal get Ksh 200 Off.
Original price was: £ 30.00.£ 10.00Current price is: £ 10.00.
Payment Methods:
Description
Solution
2.3 Risk of Increased Costs
As evidenced in Heravi and Mohammadian (2021) the cost overruns risk is as a consequence of prevalent of badly written conditions of contracts. Nevertheless, there are broadly prevalent circumstances which are integrated for prioritising on aspects which impact or potentially impacting a specific contract. In terms of costs, RCU terms and conditions note that;
Further, for RCU, they integrate Key Performance Indicators (KPIs) which are meant for ensuring that a clearly agreed pricing is used for the contracts. Often, this has contributed to challenges with the PS&M since they have remained hellbent on when these contracts could be altered. This inform the need for harnessing the awareness level of the contracts and how different occurrences could inform on the contract changes on costs. As evidence in Alebrahim vs BM Design London Ltd [2020] EWHC 3393 (TCC) case which involved a contract for refurbishment of a residential property, the contractor had increased the estimated costs initially (Creedy et al., 2010). The court of law noted that the employer can only pay for the trade price items and not any price which is not agreed upon. Further, in this case, the RCU terms and conditions note that,
Hence, there is no instances where the buyer/RCU can incur any further costs which were not initially stipulated in their contract….
Please click the following icon to access this project in full
Related Papers
(Solution) CIPD 5HR03 how policy initiatives and practices are implemented. (AC 1.2)
(Solution) New Brief CIPD Level 5 Avado 5C001 Organisational Performance and Culture in Practice
(Solution) CIPS Developing Contracts in Procurement and Supply RCU PDC
- This report has focused on evaluating Royal Commission for AlUla (RCU) contract terms and conditions.
- The area of focus in the contract entail its relevance in assisting the management of issues associated with quality, risk of time extension, risk of costs increase and unethical practices impacting the stakeholders.
- Other than this, the performance measures and management in the organisation operations has been put into account.
- For achieving this, RCU operating in the KSA tourism and culture sector has put into account.
- The contract selected is used in most of the services which are sourced by the organisation from different suppliers. This is to define the level of risk and power that each has in the contract implementation.
- Despite of existence of areas of improvement, clauses lacking detail and lack of sufficient protection, the contract terms and conditions are relevant for RCU operations.
- For all the parties and stakeholders involved in a contract implementation, there is a clear risk allocation and management. This is with the performance being measured and monitored based on their interests.
- There is a need for investing in modernised approaches intended to protect the organisation from the battle of the forms.