(Solution) CIPS Royal Commission for Alula (RCU) Developing Contracts in Procurement and Supply -PDC

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Description

Solution

Executive Summary

In this second assessment, through a focus on Royal Commission for Alula (RCU) organisation, contract terms and conditions have been evaluated. The evaluation has focused on the effectiveness of these terms and conditions in;

  • Ensuring management of risks of poor quality, extension of time, costs increase and unethical practices
  • Making sure appropriate performance measures are monitored and managed

Also, as part of this report, the battle of forms have been evaluated with the best practice in ensuring management of these battle of forms identified. This has also been reflected in this assessment recommendation for ensuring organisation own terms and conditions are used. Apart from quoting the relevant terms and conditions, a set of tools have been used (specifications analysis, risk register, Mendelow analysis among others). For instance, by using standardisation valuation model, the importance of the contract in context of RCU has been identified. Further, through Mendelow analysis of different stakeholders, the relationship with contracts has been established. Further, by using a risk register, the best practice in managing the risk of extension of time has been evaluated.

In this assessment, it has been established that the RCU contract terms and conditions have been instrumental to avoid many risks which could at the end lead to issues with the organisation ability to deliver high quality services to their customers. This is since they inform on performance, costs, risk management, quality levels and indemnity. Specifically, in the COVID-19 pandemic where there has been a significant disruption of their supply chain, the use of terms and conditions has been instrumental for their success. For battle of forms, RCU has its terms and conditions to offer protection from the vendor or supplier.

From the findings obtained in this assessment, various recommendations are relevant and entail;

  • The importance of strictly abiding on terms and conditions of the contract by PS&M team need to be emphasised
  • Expand their KPIs and SLA’s for broadening their terms and conditions
  • Benchmarking with other organisations to ensure at all times, their terms and conditions are up to date with happenings in business environment
  • For every category of spend by the organisation, a separate set of terms and conditions would be established
  • Engage attorneys in drafting of their terms and conditions to ensure they are aligned with Saudi Arabia laws

 

Table of Contents

1.0 Introduction. 4

1.1 Organisation Background. 4

1.2 Identified Terms and Conditions 5

2.0 Evaluation of the Selected Terms and Conditions in RCU.. 6

2.1 Risk of Poor Quality. 7

2.2 Risk of Extension of Time. 10

3.0 Performance Measures Monitoring and Management. 13

4.0 Battle of Forms. 15

5.0 Conclusion and Recommendations. 17

References. 19

Appendices. 21

Appendix 1: RCU Terms and Conditions (T&Cs) Summary. 21

 

 

Figure 1:Different RCU Strategies. 5

Figure 2:RCU Mendelow Stakeholders Analysis. 6

Figure 3:Contract Lifecycle Management 7

Figure 4:RCU Risk and Impact in their contract 8

Figure 5:Warranties and Conditions Compared. 9

Figure 6:Contract Implementation in RCU Phases. 12

Figure 7:Ethical Behaviors in RCU.. 14

 

Table 1:RCU Risk register 10

 

1.0 Introduction

1.1 Organisation Background

Royal Commission for AlUla (RCU) is highly ranked as a successful organisation managing natural and historical locations based in North- West Saudi Arabia (KSA). The success of their mandate is to ensure that KSA premier as a good destination for nature, culture management and heritage (RCU, 2022). The foundation of RCU is from the KSA Vision 2030 with their output approximated to range from SAR 120bn for KSA GDP development as at year 2035 (RCU, 2021). This is intended to improve the KSA economy by the input of AlUla organisation. Their commitment scope is influenced by achievement of excellence and appropriate positioning to work with institutions international by involving different players. The organisation practices is summarised in figure 1;

Figure 1:Different RCU Strategies

As evidenced in RCU (2022a findings identifying that the KSA government has in full made an investment of approximately $2 billion. This is as a seed capital to develop AlUla historical areas of growth. Further, more than $3.2 billion similarly include investment in public-private partnerships to prioritise infrastructures for projects success as at 2023 year. The rationale of this is what RCU (2022) including AlUla operating upto 25,000 kilometres square inclusive of lush Oasis valleys, Sandstones mountains and traditional cultural heritage sites.

1.2 Identified Terms and Conditions

A blanket or a standard terms and conditions (T&Cs) have been selected used by RCU different spend categories (see appendix 1). Considering…..

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