ASSIGNMENT REPORT ON CONTRACT ADMINISTRATION AND PRACTICE

Requirement

1- Write a report on "ASSIGNMENT ON CONTRACT ADMINISTRATION AND PRACTICE" in approx 2500 words with references to Havard style of writing.

Solution

1. Introduction 

The construction industry in the country of “UK” has experienced an upheaval of policy. This has been largely due to the coalition between the “Private finance initiatives” and the “partnership of public to private”. It has invariably created importance into the supply chain measures which govern localities of a country. This country formulates contracts on the basis of deeds and written statements. This has also provided clients with projects obtained within the range of expenses in a particular period. The construction industry deals with offers which can be entertained by respective contractors. It does not sacrifice quality while servicing the same. The surveyors are designated with more reliance on managing the construction projects. The club looking for a new ground is “Chelsea FC”. This has provided utmost ignorance into the contractual obligations which might entail from it. Another staff is assigned the roles of monitoring implementation into raw materials. These include the sustenance of resources within the allocated budgets as financed by managers. The contracts available for clients wishing to acknowledge perspectives have been different with regards to cost management schemes. More services try to reduce the overall expenses involved in the project, involving less divulgence on cumbersome activities like drilling and assigning personnel. 

2. Background of the Study 

The connection of activities related to construction and the environment needs to be maintained. There are larger complexities when sustainable development has to be considered as well. This type of industry also implements resources which affect the natural order of the country (Shafritz et al. 2016). The employment of workers towards accomplishing its projects is advised through its contracts. These are enumerated under the “Employment Rights Act 1966”. Their contribution concerning the economy of the country accounts for 8% of the domestic product. The output in the public sector has increased by a considerable sum between the years 1999 to 2003. This has been largely due to investment of capital of around 33 billion which have been allocated to different sectors. They have been regulated between stadiums, hospitals, offices and other agencies. 
The analysis of work contracts in the country of “UK” has experienced a turnover with a valuation of 100,000 or beyond. It was also seen how the majority of the revenue came through by the “Olympic delivery authority”. This group handled a project worth 1,565 million which reflected itself in the contracts business overall. This also involved suggestions from authorities who were experienced in organizing contracts in the same fields (Fuertes and Lindsay, 2016). The previous stadiums for “Chelsea FC” depended on the same criteria. 

3. Statement of Problem 

The problem in the context of the situation presented is the timely comprehension of the collaborative effort that is to be undertaken regarding the project to be undertaken. The preservation of the organizational values and goals have been adequately been seen with the mention of the salient objectives of ‘Quality’, ‘Timely Completion’ and ‘Cost-control’. Hence, the mention of the risks associated could be seen with the reflection of these objectives alone. The scenario where the estimated strategy fails to gauge the potential barriers would attract various forms of predicaments in the future (Van Den Hurk and Verhoest, 2016). The primary one being an ill-defined process of selecting the right form of contract that would make effective inclusion of the stakeholders in the vicinity of the project itself.
There can be budgetary issues with regards to formulating a contract in an unilateral nature by bidding towards a project. The club faces difficulties in sponsoring its capital and hence could opt for multilateral contractual proposition. This would enable construction management heads to both accept and reject invitations. It would prove cumbersome to the club largely due to the amount of time in the process. There can be even larger problems as parties have the right to reject certain clauses involved in contract. The matter that clings with the fullest compilation of the project has involvement from all the members of this group and everyone who has a say in the direction where the project goes (Elston, 2017). Here the level of compliance could be seen as a chief KPI for the project.
The organization is cautious about its internal resources and how much they could allocate at the moment. Hence the collection of resources is to be used strategically. Given the economic situation of the “UK”, the financial pressure is felt through the bodies of all the industrial, manufacturing and construction circles. The project as well the organization could not support the last-minute change to the economy and this has been the rationale of forming the situation where each contract agreement has to be judged for its inclusion and contributory effects well beforehand (Darabi et al.2017). The problem presented and tackled could also be seen on a macro level as the construction business, much like any other line of business practice depends on a steady supply chain. Whereas in other supply chains it is the nature of the service or goods offered that decides the nature of the contract, for the construction grounds it is the level of cost savings and efficiency in regards to time offered which matters (Sambasivan et al.2017). The formation of the project is liable to various market risks and loopholes with the potential to stall the project in its run and the factors of the contract are salient among them.

4. Findings and Analysis 
4.1 Estimating cost of the project

The government is at the helm of every public sector process. This has dictated that any construction project should be established after considering the returns that is valued for money. There must not be an indication of a low offering from the management team securing responsibility of the same (Worthy, 2015). The suggestions to be offered to the clients by the team of efficient managers must be evaluated through quality. This should involve inspecting the seating capacity of the stadium concerned. Therefore capital must be injected according to the requirements of the project. The options must be provided in a transparent manner that does not mar the representation of dialogue (Winch and Leiringer, 2016). This feature is inclusive of regulations provided by the “EU” guidelines. It enables the user to ascertain the several obligations around a contract before it is achieved by the management team. 

The criteria for going through the stages of the process should undergo the following methods:
i) Justifying the acres before selection-
This process will reflect the initial phase where the representative will be shown the vacant site to be constructed. The process with calculate the average acres that need to be met before providing roles to staff and instruments (Garthwaite, 2016). There are certain norms with regards to this principle as a football stadium will be around 56,700 sq feet. This must be considered by the administrator working for the construction company. An acre worth is currently around 7726 pounds in the country. Then after the people must be able to evaluate the site completely if it is chosen for the approach. This will involve a thorough inspection of facilities that could be provided into the amphitheater.
ii) Basis of payments to workers and consultants-  The second step will rely upon satisfying the workers who will constantly upbeat to meet demands within the requisite time. This step also accounts for the services provided by professional consultants in favor of the party. There can be three ways which will establish the modes of payment to be made to the same people. These are either 
a)    Based on time
b)    A handful in the first instance
c)    According to the value of the stadium
This structure of managing the fees will take under advisement the nature of services to be offered by each individual. It will also take under evaluation the scope of long term goals including appraisal benefits like a bonus (Carter and Whitworth, 2017). There can be many laborers leaving intermittently while on their respective roles. This can impede the project altogether and it is because of which the welfare of these people must be looked after. The provision of a handful in the first instance would mean that people will be paid in bulk before they leave the roles (Wang et al. 2018). The whole scenario is evident from a case study that involved “the Scottish parliament in 2004”. This explained how the fee adjustments could not be tethered alongside client objective and commercial principles (Pouloudi et al.2016). This is even attributed to consulting firms that govern the management of projects based on their payment. The more they are paid, the easier the process of distribution is formed.
iii) Opting for suitable contractors- This can only be triggered through a method of competitive tendering which values operations according to the money invested. The ideology of value becomes increasingly important in this approach (Gander, 2017). The tender reservation must be brought about through observation of weight age by numerical scores. This makes the process more standardized and subjective. It can also determine the auditing criteria which can be implemented in the same approach. 

  • The following are a few tendering options.
    This system involves the submission of tenders through responses from newspapers and magazines. The same way the stadium can be highlighted.
    b)    Selective tenders- The process is initiated by invitations and fewer organizations can make their tender offers. The managers can opt for the best organizations requesting tender like Adidas. 

  • a)    The option of open tenders-

The tenders can also be based around competitive principles that allow most people to offer tenders by evaluation. This can be aligned to a case study that involved “Stoke on Trent cultural quarter”. It wanted to gain the economic advantages by inviting tenders for interviews. The was opted to reduce the overall cost. It could only achieve about 40%.

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4.2 Construction Management Procurement process

The club of "Chelsea FC" will administer funds into building the stadium which will be publically owned. There are shareholders who are willing to enrich the process of ownership for the stadium. The club providing resources to the project managers want to integrate a proper commissioning. It will ensure the stadium is provided to the authorities after its full design is completed. This club with then align competitive prices that will involve ticketing schedules and ground staff organization. 
The entire process will be documented under legally bounded contracts. This can brought into light when things do not work out between both the concerned parties. This will also depend on the nature of the contract being unilateral. This scheme will the construction management route of the club as a whole. The onus of deciding fees of the process with depend upon construction managers as they authorize the employer club. This entire feature will require construction managers communicating with club authorities. There can be changes in the interim as employers have the provision to change their minds . These will revolve around problems with design and relative supervision programs that checks with the stadium view points. This makes the employer liable to several indictments and thus ensues risks into the methods. 

4.3 Form of contract that fulfills the function

This club of "Chelsea FC" assigned a perspective administrator to stage contract with a quantity surveyor of the construction management company. The governance of the entire functions will be monitored under a "JCT" contract base. There are frameworks in the operation which will be outlined in the contract article. It will employ the names of the representatives like surveyors and architects designing the stadium in the same articles.
The purpose of this contract form is composed under "JCT CE" type contract. The choice of this contract is due to lower expenses in transactions involving binding among parties. This type of contract also provides benchmark provisions for construction industries. These include allocating risk in a worthwhile manner. The parties are covered on account of sudden pitfalls which might occur in the system. 
There were other contract procedures like "NEC" which took more time in agreement between parties. This can also warrant "FIDIC" type of contract which stresses to reduce conflicts and offers sub clauses to minimize variations. This type of contract is time consuming as club owners have to weigh the advantages of 20 clauses involved in the same. There might be several issues related to payment which are ensured through contracting. The clause 2.4 of the latter contract might take a lot of time for the club to understand. It involves employer payment structures which are far more understandable under a "JCT CE" base.

4.4 Statutory laws involved around contracts with construction industries

The construction of the stadium will widely feature contract recognition among club and other parties through "economic development act of 1996". This provision can feature "LDEDC amendment act" which will be applied by the club. It will ensure transparency on account of verbal exchanges between parties and sudden impact into contracts due to intermittent errors. These problems can be sorted through distribution of penalties involving sudden suspension of stadium seating capacities. The contractor might also claim indemnities in the form of loss of business unduly involved in the process. This entire act of "LDEDC amendment" protects all the people featuring in the contract.

4.5  Determining the supply chain of engineering

The set of strategies could be established in major ways. This will have its own set of risks that is not fraught with jeopardy for client and contractor. It will depend on the choice of shaping the project and determining its design (Vayena et al.2016). Similar planning was laid behind the “Tottenham Hotspur” ground. This will benefit the strategies as they will be able to provide good advantages to the process. These can be elaborated through the following points. 

  • The single unit is responsible for engineering the project with be supervised by the solicitor. This will prevent too much delegation of authority for the principle client and outsourced to the foreign market.

  • The certainty about prices can be obtained with a lesser margin of risks (Flynn and Davis, 2016). The constructor through his mode of contract can handle the majority of the risks.

  • The project will be substantiated in a far lesser time if the constructor overlaps designing methods. It will also ensure that service providers inside the stadium can transform value into productivity.

  • There can be marketing advantages like allocation of banners and poster provisioning across the soccer ground.

5.Recommendations 

The above study permeated an essence of perspective for the client. It is these elements that must be considered by the rational minds involved in operation for its successful implementation. This will include new technologies which can make work easier and reduce time. There are additional investments in that regard that can go beyond expectations. Other categories must be sought after as well. There lies the crux of thinking which can be distributed in the below-mentioned suggestions.

  • The club is involved in a major league division and this should encourage its owners to deploy more finances. This will not only create stolid goodwill for the club. It will also be acknowledged by the fans of the same who come in droves to watch their stars. A newer stadium will help establish previous unaccomplished goals that will be undertaken with diligence. 

  • A newer stadium with new models of design will improve the overall ambiance of the stadium. The management team must be selected by the administrators of the club after reviewing their past achievements. This would establish an idea regarding the engineers in the group. It will also show the ability of the workers with regards to newly erected public buildings. This will ensure that trust becomes the guide to move the leaders of the football club. 

  • The contract clauses inside "JCT" binding must follow JCT CE clause 7.16 to 7.29, as this will ensure the construction managers to finish projects on time. It will further ensure that the contract suppliers receive timely payments.

  • The budget formulation must take into consideration insurance policies. This needs to be followed up by the solicitor who is involved in supervising the works contracts. There could be intermittent failures in construction that might cause accidents. There must be clauses in contracts that state how an employee could be blamed for ignorance towards operational goals. These must be made clear by the lawyer in question to the employees, as well as other staff members when they are hired.  

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6.Conclusion 

This study has taken into consideration several important scenarios that can be opted by the club managers to build a stadium. These even regulated the legal principles which must be exercised for governing the project as a whole. The employee roles were evaluated along with their contractual terms. It provided perspective into advising the club management for laying down effective strategies for framing the plans. The study concludes that the entire operation will require a sturdy distribution of accounting capabilities. It is through this that management can handle its expenses and that can further be redressed by auditors who are hired for review. The sound mind must establish caution to avoid financial risks that can arise in any form. The study also concludes that many talented individuals can showcase their abilities. It will rely heavily on the team of managers as they choose the best workers, who can provide the best attainment goals. This is also characterized by the suppliers who provide the resources for producing in the first place. The report also concludes that some officials might ignore the health regulations of the entire project. It should however not be ignored by the planners who can ensure the same through consultation with constructors. The principle fact of public administration is ensuring sustainable development at all costs. The study finally concludes that to reduce the time the club management must decide more swiftly. This would ensure that matches can take place timely with calendar years.

Reference List

  • Books:

  • Shafritz, J.M., Borick, C., Russell, E.W. and Hyde, A.C., 2016. Introducing public administration. Routledge:(UK)

  • Journals:

  • Carter, E. and Whitworth, A., 2017. Work activation regimes and well?being of unemployed people: Rhetoric, risk, and reality of quasi?marketization in the UK Work Programme. Social Policy & Administration, 51(5), pp.796-816.

  • Darabi, M., Macaskill, A. and Reidy, L., 2017. A qualitative study of the UK academic role: positive features, negative aspects and associated stressors in a mainly teaching-focused university. Journal of Further and Higher Education, 41(4), pp.566-580.

  • Elston, T., 2017. The conflict between explicit and tacit public service bargains in UK executive agencies. Governance, 30(1), pp.85-104.

  • Flynn, A. and Davis, P., 2016. The policy–practice divide and SME-friendly public procurement. Environment and Planning C: Government and Policy, 34(3), pp.559-578.

  • Fuertes, V. and Lindsay, C., 2016. Personalization and street?level practice inactivation: The case of the UK's Work Programme. Public Administration, 94(2), pp.526-541.

  • Gander, M., 2017. Careers of Professional Staff in Australian and UK Universities: A Mixed Methods Pilot Study. Australian Universities' Review, 59(1), pp.87-96.

  • Garthwaite, K., 2016. Stigma, shame and people like us': an ethnographic study of foodbank use in the UK. Journal of Poverty and Social Justice, 24(3), pp.277-289.

  • Pouloudi, N., Currie, W. and Whitley, E.A., 2016. Entangled stakeholder roles and perceptions in health information systems: a longitudinal study of the UK NHS N3 network. Journal of the Association for Information Systems, 17(2), pp.107-161.

  • Sambasivan, M., Deepak, T.J., Salim, A.N. and Ponniah, V., 2017. Analysis of delays in the Tanzanian construction industry: Transaction cost economics (TCE) and structural equation modeling (SEM) approach. Engineering, Construction and Architectural Management, 24(2), pp.308-325.

  • Van Den Hurk, M. and Verhoest, K., 2016. The challenge of using standard contracts in public-private partnerships. Public Management Review, 18(2), pp.278-299.

  • Valencia, E., Brownsword, R., Edwards, S.J., Greshake, B., Kahn, J.P., Ladder, N., Montgomery, J., O'Connor, D., O'Neill, O., Richards, M.P. and Rid, A., 2016. Research led by participants: a new social contract for a new kind of research. Journal of Medical Ethics, 42(4), pp.216-219.

  • Wang, H., Xiong, W., Wu, G. and Zhu, D., 2018. Public-private partnership in Public Administration discipline: A literature review. Public Management Review, 20(2), pp.293-316.

  • Winch, G. and Leininger, R., 2016. Owner project capabilities for infrastructure development: A review and development of the "strong owner" concept. International Journal of Project Management, 34(2), pp.271-281.

  • Worthy, B., 2015. The impact of open data in the UK: Complex, unpredictable, and political. Public Administration, 93(3), pp.788-805.

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