Solution

Table of Contents

1.0 Introduction. 4

1.1 Red Sea Global (RSG) Organisation Background. 5

1.2 Context of Contract Terms and Conditions. 5

2.0 Analysis of Terms and Conditions. 8

2.1 The Risks of Poor Quality. 8

2.3 Risks of Increased Costs. 12

2.4 Risks of Unethical Practice. 13

3.0 Relevant Performance Measures Monitoring and Management. 13

4.0 Concept of Battle of the Forms. 16

5.0 Conclusions. 17

6.0 Recommendations. 17

References. 19

Bibliography. 20

Appendices. 21

Appendix 1: A summary of the RSG Contract Terms and Conditions. 21

Figure 1:Mendelow Matrix Stakeholders Analysis Summary. 6

Figure 2:Summary of the Cycle. 7

Figure 3:Contract specifications and terms and conditions. 8

Figure 4:Conditions and Warranties in Terms and Conditions. 9

Figure 5:A summary of performance management and monitoring. 14

Table 1:Risks Register in identified Contract 9

1.0 Introduction

1.1 Red Sea Global (RSG) Organisation Background

Red Sea Global (RSG) was started in 2018 being a closed joint stock company fully owned by the Public Investment Fund (PIF) of Saudi Arabia (KSA) (Red Sea Global, 2023). The organisation was established for driving the development of Red Sea Project which is a regenerative tourism destination in Saudi Arabia’s West Coast . Also, the organisation is tasked with the responsibility of implementing one of three giga-projects under the leadership of HRH Crown Prince Mohammad bin Salman bin Abdulaziz Al- Saud in year 2017 (Red Sea Global, 2023). Being a cornerstone of Vision 2030, RSG is working in transforming the country, developing enormous economic opportunities for KSA citizens and promoting kingdom rich environment and cultural heritage. The organisation vision is becoming world’s most responsible developer through being a trailblazer of new international standards leading to enabling of social and ecological transformation.  The mission of the organisation is being agents of change through partnership with international greatest minds for spearheading new innovations reimagining boundaries of the sector and coming up with better world for individuals and planet.

1.2 Context of Contract Terms and Conditions

The contract selected is standard/blanket terms and conditions which are used in RSG irrespective of the spend and risk in convertible construction contract. This contract is broadly applicable in different construction projects pursued by the organisation. By referencing on the terms and conditions, risks and power are appropriately distributed to buyer (RSG) and vendor or suppliers who are contractors in different contracts. Through an appropriate stakeholders analysis, it is possible to identify how the contract terms and conditions are relevant for the different stakeholders by using Mendelow Stakeholders Analysis (CIPS, 2022).

Figure 1:Mendelow Matrix Stakeholders Analysis Summary

Source: CIPS (2022)

High Power; Low Interest– In developing terms and conditions, Saudi Arabia (KSA) West Coast Population in RSG projects being a regenerative tourism destination. Also, the terms and conditions are dependent on achieving Regenerative Tourism Management in Public Investment Fund (PIF) to exert a lot of power and achieve value for money outcomes.

Low Power; High Influence– Cost management department and RSG Management leverage on low power and interests. In contract terms and conditions, they influence stakeholders relations to achieve expected outcomes.

High Power; High Influence– Taking into account of suppliers,  PS&M for RSG, accounts/finance teams and customers influence the terms and conditions developed. They reference the terms and conditions to harness team-based working, consultations and information exchange.

Low Power; Low Interest-The terms and conditions development must be aligned with expectations of RSG board of management and legal teams. This is due to their low power and interest in the process. The terms and conditions include their policies, legislations and alignment with best practice in line with organisation operations.

Additionally, with the identified stakeholders relations in terms and conditions, it is clear they are relevant in risks management. The terms and conditions in RSG are appropriately used in the entire contract management cycle (CIPS, 2023). The cycle evidence on relations and contract in place as illustrated in the following;

Figure 2:Summary of the Cycle

Source: CIPS (2023)

In the different stages identified, terms and conditions are important to guide risks distribution and to adhere to contract demands. This is with best negotiations pursued and change noted. The terms and conditions guide internal risks and external operations.

2.0 Analysis of Terms and Conditions

For the convertible construction contract terms and conditions (see appendix 1), they define stakeholders relations, managing risks and guiding success in implementing the contract. The forms of specifications of the contract define the terms and conditions of a contract and how it is used as shown below;

Figure 3:Contract specifications and terms and conditions

Source: CIPS Notes 2023

Considering RSG selected terms and conditions, performance represent the main specification of their operations. For this specification, it has high-level vulnerability and risk and also high-level relative value and impact. As evidenced in Li et al. (2021), category of contracts performance harness costs overruns management, productivity and implementing contracts. This is in regard to costs overruns and functions of the organisation.  With the functions being appropriately, they are distinct from point of lack of testing approaches/pre-delivery being essential before implementing the contract.

2.1 The Risks of Poor Quality

In CIPS (2023a) report, “Quality” in contract implementation represent entire technical demands associated with sourcing of products and services. The terms and conditions ought to be conforming to contract demands. Considering terms and conditions for RSG, quality prioritise on the stipulations of the quality assurance system noting compliance with contract demands.

The identified contract terms and conditions cannot be classified as warranty as it is limited relevance to provide injured parties remedying the damage. This represent a condition since it is essential for the contract as stipulated in the terms and conditions of the contract. A summary of comparison is illustrated in the following;

Figure 4:Conditions and Warranties in Terms and Conditions

Source: Commerce and Management (2023)

For the selected RSG contract terms and conditions, it is essential to adopt a risk register to monitor and analyse risks. According to de Ruijter et al. (2020), contract terms and conditions reflect on how the convertible construction contract is implemented. A recent project implemented in RSG involved construction of Prefabrication & Modular Construction Project (Red Sea Global, 2023). A summary of risk register for identified contract is as summarised in table 1;

Table 1:Risks Register in identified Contract

Source: CIPS (2023b)

In risk register (table 1) evaluating risks in RSG means that there exit various gaps limiting success in implementing the contract. A summary of contract risk of quality is identified in terms and conditions noting;

Hence, the quality risks are evident in contingencies and different situations which include site conditions, co-parent, co-ordinate and interface (Oh et al., 2020). Therefore, it is important to consider terms and conditions review to guarantee their alignment with KSA laws on contracts implementation.

2.2 Risk of Extension of Time

In Hansen (2020), extension

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