Assignment Sample on D31PZ Contracts and Procurement
Part 1:Procurement
Article review: Challenges Of Construction Procurement: A Developing Nation’s Perspective”
Introduction
The study aims to analyse the chosen article “Challenges of construction critically
Procurement: A developing nation’s perspective”. It is often seen that the procurement of infrastructure projects faces global challenges. The literature provides significant evidence for the failure of delivering the required infrastructure to the specific nation. Additionally, the study is conducted on exploratory qualitative to understand the challenges faced by construction procurement in Nigeria. The relevant section will be critically analysed to determine the article’s limitations and strengths to accomplish the research goal. Therefore, studying the report will help to understand the effectiveness of the article to develop a better understanding.
Discussion
The analysis is based on two differences: in the first part, the article’s description is provided, and the key findings of the research will be analysed. In the next section, it is further seen that the strength and the limitation identified in the article will be analysed.
Description of the article and critical findings
The author has provided a summary of the article, including the research methods being used and the findings that have been achieved. The purpose of this section is to provide a clear understanding of the research article and the challenges faced by public procurement in Nigeria (Ogunsanya et al. 2016). From the abstract, it is easily understandable that the stakeholders must handle the issues. The abstract is followed by the main section introduction, which is even more critical for the research article. This section can be improved by a brief definition of the procurement infrastructure process. On the contrary, it is seen that the article has talked about the challenges of construction procurement which has become pertinent at times. There is
The simple English language has been the most positive aspect of the research article. The research objective clearly states that the paper is developed to identify the factors affecting construction procurement. However, the significance of the objective is also noted as it will be useful for the policymakers as well. Hence, the author has tried to be specific about the research in every section. This ensures that the researcher has a better understanding and knowledge of the challenges that have been discussed in the article.
The following section is the literature review where the author has tried to develop ideas from the different research works. It has significantly discussed the construction industry. On the contrary, in section 3.2, the author has effectively addressed construction procurement, which was lacking in the introduction part.
The author has efficiently depicted the economist’s view to identify the specific challenges of procurement. It has helped to develop a strong point as it is evident that information asymmetry is the major challenge at the initial stage. On the other hand, the author has also identified the factors affecting construction procurement in countries such as Japan, Nigeria and Zimbabwe (Ogunsanya et al. 2016). This will further help the policymakers to understand the requirements needed to procure construction projects successfully.
The author has also clearly stated that the article is based on an exploratory qualitative approach to avoid any confusion. The Nigerian Construction Industry employees were selected. This ensures that the stakeholders have collected accurate data.
Conducting primary research has made the study authentic, which can be relied on in terms of policymaking.
In the finding and discussion part, the author has identified several points which are further subdivided. The short and conscious finding makes it easier to read and understand. The results have stated that “Improper Implementation of Legislative Framework, Cessation of Funding, Corruption”, and others are the primary cause of challenges in the procurement of construction projects.
Analysing strengths and limitations of the articles
The article has maintained a significant link throughout the paper, making it easier to understand, which has initiated to conclude the paper accordingly. For instance, the author has developed the overall understanding in the abstract. On the contrary, the only limitation that has been identified in this article is that the research does not have any research aim and research question (Ogunsanya et al. 2016). Developing research questions can be significant to estimate whether the research is successfully accomplished.
However, the strong point of this research is the objective that has been developed as it shows the specific area that is to be followed, which mitigates any deviation. Hence, after reading the paper, the readers will have sufficient knowledge about the research. However, the limitation of the research shows that the authors have only focused on the challenges in construction procurement. In contrast, it could have been improved by providing mitigation strategies that the stakeholders can adopt.
Furthermore, the literature review has helped to develop a solid ground to conduct the study accordingly. Some of the challenges that have been identified in the literature section are “poor cost, time and quality performance, low level of professionalism, poor implementation of the existing status and codes” (Ogunsanya et al. 2016). Projects vary from location to location; therefore, the study has considered Japan and Nigeria and Zimbabwe to understand the difference. The possible changes have been identified, which has enhanced the knowledge in the procurement project. Thus it is also the strength of the research paper.
The research is developed with factual knowledge that has minor deviation; it has been further enhanced by choice of method used by the author. The purposive non-probabilistic sampling justifies the research outcome. Hence, it is clearly seen that the research exhibits more strength other than limitation.
Conclusion
Reviewing the article shows that the title of the article is justified. This is because it shows the challenges being faced by the construction industry. Additionally, the research objective has also been achieved through the data collection method and analysis. The study has efficiently revealed all the factors that are affecting construction procurement. The factors that need to be considered by the policymakers and the stakeholders are like having significant knowledge about procurement methods, providing a hostile working environment and others. Therefore, it can be concluded that the article has been critically analysed.
Part 2: Procurement and contracts
Introduction
The contract is referred to as the written agreement between employer and contractor that helps avoid any further misunderstanding. It simplifies the rights and responsibilities in the event of disputes. The condition of the contract intends to seek the legal framework where the work is generally carried out. In this section, FIDIC 2017 and JCT 2016
SBC/Q is considered to compare the condition guiding payment, the state that drives project programming, as well as comparing dispute resolution methods. This will ensure the difference among the selected contracts.
Comparison of conditions guiding payment
Comparing FIDIC 2017 and JCT 2016, SBC/Q has shown that FIDIC recognises engineers whereas JCT recognises contract administration as the Third-party certifier in terms of the contract. In the case of the FIDIC Red Book, the engineer can freely determine the changes within the contract price, and therefore it can be included in the contract in the following payment certificate. Hence, the “Accepted Contract Amount” is referred to as the contractor tender price, which is incorporated in the contract. FIDIC Red Book also imposes significant strict time limits on claims (Sub-clause 20.1) (Fidic.org, 2021). To ensure guiding payment, it must include a proposal that should consist of a significant method statement and a revised programme—the proposed cost to implement the changes. The payment consists of substantial claims (Sanni et al. 2020). The payment certificate needs to include an amount for any claim that may have been reasonably substantiated under the significant provision of the contract. The contractor is entitled to the payment in case the party is substantiated.
On the contrary, JCT intends to provide a fair payment system by considering the payment cycle throughout the contract tires. The Government Fair Payment Campaign significantly influenced this move. It seeks to achieve “standard industry payment” in the year 2025 (Lexisnexis.com, 2021). On the other hand, the Interim Valuation date must be agreed by the parties made in the contract particulars. However, in comparison JCT if no Interim Certificate has been issued by the contractor and the contractor has failed to make any payment. Then an interim certificate that states the due date and the basis are provided, which displays the payment has been calculated.
Comparison of conditions guiding project programming
In the case of FIDIC 2017, it remains unchanged for project programming unless the p[rohram is not considered as the contract document. This ensures that FIDIC 2017 is not regarded as binding on the parties. The programme is often used in terms of indicative tools for the suppliers, parties, and consultants that help to administer the progress of work. On the contrary, the engineer must review the programme in order to ensure that it complies with the contract. It is to be done within 21 days. Thus it will ensure that the programme is deemed to be compliant. The “New Yellow Book” is often applied to the lump sum contract project where the contractor can also take part in design work. According to FIDIC 2017, the contractor must try to update the programme whenever it intends to cease reflecting target actual progress (Jctltd.co.uk, 2021).
On the other hand, JCT 2016 SBC/Q focuses on liabilities as well as the risk in respect to traditional contracts. It has been designed to guide construction industry project programming. This is mainly because it focuses on domestic building projects other than international projects. It shows the programme by providing the contractor with drawings along with the bills of quantities. Thus it ensures the quality and the quality of the work. This ensures that the project programming JCT requires its significant contractors to provide a master program before execution and after the contract is executed (Neccontract.com, 2021). Thus, it is different from FIDIC 2017 as it provides a different number of subjective tests to determine the events, which further provides ground to recompense to the contractor. On the other hand, JCT also ensures to offer separate contracts to the employer design or sometimes to the contractor design.
Comparison of dispute resolution methods
FIDIC has also released its second edition in terms of the condition of the contract, which includes a dispute resolution mechanism. It included a helpful new provision. It intends to offer the significant parties to achieve fast as well as inexpensive relief. It also provided three tires of binding arbitration that is designed to prevent the need for arbitration. On the other hand, iot also provided a mandatory determination that the party can significantly finalise a building decision. Therefore, the dispute resolution mechanism has followed a similar structure as the 1999 contract (Fidic.org, 2021). It is broadly divided into different categories such as “making claims, the role of engineer, avoidance of dispute and others”. In the year 2008, gold Book FIDIC has further expanded the role of the Dispute Adjudication Board in the contract, which has significantly replaced the Engineers binding decision. On the contrary, the agreements of 1999 will ensure that engineers determine the initial step in the claim process. The new clause 20.4, “Avoidance of Disputes”, helps to provide informal assistance to resolve any issues (Fidic.org, 2021).
Comparing FIDIC to JCT 2016, SBC/Q noted that dispute resolution provision focuses on the position of JCT design and build contract in the years 2011 and 2016. It commonly provided different methods of dispute resolution such as negotiation, adjudication, arbitration, legal proceedings and mediation. However, adjudication is referred to as a statutory right. Therefore if one party intends to implement it, the other needs to concur as well. However, under JCT, negotiation is referred to as the optional provision to resolve disputes (DAC Beachcroft 2021). On the contrary, negotiation and mediation are referred to as voluntary processes that significantly depend on the parties’ cooperation that may lead to binding results. Therefore in case the above is not considered, mediation and sometimes adjudication is used. Additionally, if the parties are dissatisfied thus the dispute is resolved by using arbitration or litigation. Hence there are more options available for JCT other than FIDIC.
Conclusion
Through the above discussion, it is evident that the FIDIC 2017 and JCT 2016
SBC/Q differs from one another. It can be said that JCT is used commonly in construction. On the contrary, FIDIC is often used in terms of construction projects internationally. The useful checklist. Therefore, it can be concluded that the comparison has been efficiently made with a better understanding of the different contracts.
References
DAC Beachcroft. 2021. JCT Contracts 2016 – changes to the payment regime – DAC Beachcroft. [online] Available at: <https://www.dacbeachcroft.com/es/gb/articles/2017/february/jct-contracts-2016-changes-to-the-payment-regime/> [Accessed 18 November 2021].
Fidic.org. 2021. [online] Available at: <https://fidic.org/sites/default/files/1%20Making%20claims%20for%20time%20and%20money.pdf> [Accessed 18 November 2021].
Fidic.org. 2021. fidic.org. [online] Available at: <https://fidic.org/sites/default/files/press%20release_rainbow%20suit> [Accessed 18 November 2021]
Jctltd.co.uk. 2021. jctltd.co.uk. [online] Available at: <https://www.jctltd.co.uk/docs/Deciding-on-the-appropriate-JCT-contract-> [Accessed 18 November 2021]
Lexisnexis.com. 2021. [online] Available at: <https://www.lexisnexis.com/uk/lexispsl/construction/synopsis/94395:143856/Standard-form-construction-contracts/JCT-contracts-2016?wa_origin=gnb> [Accessed 18 November 2021].
Neccontract.com. 2021. [online] Available at: <https://www.neccontract.com/getmedia/3d1b7c3f-097d-4504-8b1f-5a944dbc19dc/A-comparison-of-NEC-and-JCT.pdf.aspx> [Accessed 18 November 2021].
Ogunsanya, O.A., Aigbavboa, C.O. and Thwala, D.W., 2016. Challenges Of Construction Procurement: A Developing Nation’s Perspective. In International Conference of Socio-economic Researchers ICSR 2016 SERBIA. Conference Proceedings (pp. 205-217).
