Saturday, November 9, 2019
Thank You for Smoking by Nick Naylor
Sneha Maknojia Professor Christopher Dunn English 1302- Essay One 27 February 2013 Thank You for Smoking Thank You for smoking is about a lobbyist name Nick Naylor who is the vice-president of Academy of Tobacco studies. The movie revolves around how Nick smooth-talks everyone into believing that Tobacco is not very harmful. Nick Naylor's main job was to make people aware of the research his academy does and answer questions on television regarding health claims against tobacco. Nick believed everyone has some sort of talent and he has the talent to talk people in or out of an argument.He always knew what to say and when he needs to say it. In the movie Thank You For Smoking the main character Nick Naylor shows the power of how argument when it is done in a correct manner, which can make everything seem right. There were many instances in the movie when Nick showed the power of argument. In the movie he argued himself out of some other argument. Throughout the movie Nick showed the p ower of art and power of argument from the smallest of things to very serious matters.The first instance I thought he showed his knowledge about argument is when he is with his son in Los Angeles and teaching him how you do not have to be right to win an argument. He is teaching his son an art of argument by saying that to win an argument all you have to do is to prove other persons argument wrong. The reason why I thought it was kind of an interesting philosophy of Nick Naylor is because it is kind of true sometimes you do not have to prove yourself right.All you have to do is that prove the other person wrong which will automatically make you correct. The second time I thought Nick Naylor showed his power over arguing is at the beginning of the movie when he is at a television talk show and he was being criticized of how the academy is not doing anything to prevent the number of deaths of children because of tobacco. Here again using his great skill of smooth talking saying that w hy would a tobacco company would want their customers to die. Again he made a point which I thought was very logical.He put an end to this argument by claiming how academy is putting their own money to help persuade kids not to smoke. Nick again using the power of his argument skills by putting the on us on the other guy instead of himself and let the other guy prove his case instead Nick trying to prove his. The third evidence of Nickââ¬â¢s argument abilities is shown at the congressional hearing towards the end. When he was arguing on the issue of people being not informed enough about the dangers of tobacco, he was asked to come in to prove that otherwise.Here again instead of proving his own point, Nick Naylor brought up a whole new argument to get peoples focus off from the tobacco argument. He made another valid point by saying that if tobaccoââ¬â¢s hazardous warning needs to be more prominent on its packaging because it is great danger to American people health than che ese have to have hazardous warning too. He argued that a lot Americans died because of cholesterol so they should put a more prominent danger warning on cheese related products too.Nick gave a great analogy about people being knowledgeable enough to make their own decisions. Just like cheese do not need a warning sign because people are aware of the danger of cholesterol by eating too much cheese, people who smoke are aware of the harm of tobacco. Itââ¬â¢s a person own choice what they want to consume and what they do not, people are knowledgeable enough to know what is harmful to them and what is not. These claims that Nick have made about the beauty of arguing supports my thesis about how throughout the Nick Naylor showed the power of argument if it is done correctly.He argued with his counter parts in a manner that it never looked like he was arguing. He talked in such a soft, smooth tone that sometime he was not the one who was defending the argument and it is the other way a round. Some people think arguing never brings any good, but in this movie Nick Naylor showed how arguing, if done correctly, can persuade people to change their way of thinking. I thought the last dialogue of Nick Naylor sums up his talent of arguing quiet brilliantly. ââ¬Å"Michael Jordan plays ball. Charles Manson kills people. I talk. Everyone has a talent. ââ¬
Thursday, November 7, 2019
The role of originality and creativity in setting out a good marketing communication strategy The WritePass Journal
The role of originality and creativity in setting out a good marketing communication strategy Introduction The role of originality and creativity in setting out a good marketing communication strategy ). The paper panda tour serves as a proper example of how business should provide customers with more than the standard form of advertising (Thun, 2010). For instance, the idea of Integrated Marketing Communications (IMC) makes a clear sense in this context by emphasising the originality and creativity dimensions of the strategy behind the paper panda tour. Researchers suggest that marketing teams should focus initially on the customer, which is the case with the paper pandas (Porcu, del Barrio-Garcia, Kitchen, 2012). Customers are exposed to the original and creative project of paper pandas through a mix of integrated communication methods, which are considered by people eye-catching and trustworthy. According to marketing researchers, IMC is an innovative and creative step because the complete culture of marketing agencies, in-house marketing departments, and marketing consultants had expanded the idea of separating advertisement, direct marketing, sales promotion, and public relations, rather than the pleasant, customer-centred development process that IMC requires (Duncan Mulhern, 2004). Integrated Marketing Communication has become an important part in marketing because the technological system has the integration of business stakeholders (Kalamas, Mitchell, Lester, 2009). According to experts, planning and implementation of all marketing communications are required to be done in an original and creative manner in order to meet the marketing objectives and attract more customers (Vance, Howe, Dellavalle, 2009). The process of building and applying different communication programs reflects in the possibility to have a solid impact in the future over time (Kitchen Schultz, 1999). The general IMC method focuses on customers and functions to establish and classify the methods to extend the influential communications programs. For the creators of the paper panda tour, it has become important to plan, develop, implement and assess the coordinated and measurable influential marketing communication programs applicable to external and internal viewers over time (Laurie Mortimer, 2011). It is a policy in which different marketing communication tools like promotion, public relations, sales promotion, direct marketing and personal selling operate together to st rengthen the communication process to target consumers. Such holistic and creative approach has led to the popularity of paper pandas. Media has experienced a wide phase of development in the last decade, implying that the creators of this original project have considered the importance of applying essential marketing strategies to reach out an optimal number of customers (Duncan Mulhern, 2004). Marketing managers were formerly focused on advertising their product/service through traditional marketing forms like TV, radio and newspapers (Gronroos, 2004). However, now the current marketing trend appears to be digital as Information Technology has become an important element of daily lives (Reid, 2005). The digital aspects of originality along with the physical dimensions of creativity evident in the massive project of paper pandas have indicated the use of proper communication strategies. A concept shift has been presented, or in other words, the creators of the project have focused on demonstrating a move from traditional marketing towards digital content that flows across various integrated media channels. As a re sult, more people can be informed about the project of the paper pandas and thus would prefer to see it (Laurie Mortimer, 2011). The theory definitely suggests about building the marketing communication mix which is considered being interdependent and bringing more incorporation and moving towards having several methods of accessing media, i.e. bringing in more flexibility in the marketing mix by using a combination of traditional and new digital media. Furthermore, it refers to the actions of media audience as being migrant, i.e. changing the marketing form that can provide them with the required experience. In such marketing environment, customers are dynamically involved and looking for new, original and creative content to make proper connections. Transition has played a relevant role in shifting the marketing trends, which is obvious in the formation of the paper panda project. The concept of transition indicates that the traditional media is not being displaced; rather its operations and significance are being shifted with new media options (Reid, 2005). This reflects in providing detailed online information about the project, such as in social media platforms and blogs. For instance, in a blog by Ng (2014), the focus is on describing the paper panda project in detail, with an emphasis on the substantial number (1600) of paper pandas exhibited to the audience in Hong Kong. In this way, media transition is more than merely a technological shift changing the relationship between existing technologies, sectors, markets and supporters (Kelm, 2011). Transition has brought remarkable changes in the media rights and has improved marketing media concentration. The elements of originality and creativity have played an important role in forming a good strategy that involves a combination of different IMC elements (Michaelidou, Siamagka, Christodoulides, 2011). According to marketing experts, there are five established IMC elements known as Advertising, Promotion, Direct marketing, Personal selling and PR (Public Relations). It has been indicated that the paper panda project in Hong Kong has been successful in covering all these elements and achieving substantial customer interest (Porcu, del Barrio-Garcia, Kitchen, 2012). A good marketing strategy normally focuses on building original and creative content that creates attention as well as motivational encouragement for users to share it with their friends and families (Kelm, 2011). For instance, the paper panda project can be adequately popularised through different social media platforms because it is a relevant step to rely on the contribution of different users to talk about the exciting project. The keys to social media success are user contribution, user brand loyalty, user enthusiasm, and the communication between people (Laurie Mortimer, 2011). The introduction of an original and creative design related to the paper pandas, and the creation of opportunities for social interaction, are some of the features making this project quite appealing to the general audience. Many marketing experts long before have recognised synergism and originality as important concepts behind the introduction of a good marketing strategy; the incorporated effect of each effort would force the marketing communication to become more effective (Laurie Mortimer, 2011). In this way, originality and creativity can enhance the brand image and popularity of companies that consider the importance of endorsing those concepts (Kelm, 2011). Communication, especially if it is done in an original manner, also represents a significant driver of marketing communication activities. Communication, as seen in the paper panda project, is a fundamental element which allows the creators of the project to connect with the audience (Duncan Mulhern, 2004). This simply occurs through communicating of ideas and seeking to establish particular perceptions of these original paper pandas introduced in a quite creative way. With the rapid development of technology, modern organizations can utilise different communication channels to attract a significant number of customers. As mentioned, the role of social media platforms is important in the process of facilitating organisational communication (Kelm, 2011). The creators of the paper panda project have obviously ensured the creative application of a relevant marketing planning platform in a direction of expanding the positive impact of communication on all stakeholders (Ng, 2014). Commun ication has a strategic role in contemporary organisations. It is important to emphasise its priority of expanding particular marketing activities through the development of diverse communication channels. The emphasis is to deliver a consistent and properly structured message about the original project. Creativity is basically the application of better ways of solving organisational problems. The ability of an organisation to change in the environment provides the degree of elasticity and adaptability in all kinds of situations through creativity (Laurie Mortimer, 2011). Originality means that a company has promising financial prospects that will ensure increase in profits. It means that whatever changes occur in the market, the company will continue to grow by providing the required services, hence increasing its market share and in the end have high revenues. Thus, originality and creativity can be used as adequate measures of performance as related to the paper panda project (Ng, 2014). It is important to mention that this project is quite flexible and has produced the necessary positive effects that original and creative projects usually produce in the audience. This paper discussed the role of originality and creativity, which have been indicated as essential principles of a good marketing strategy (Duncan Mulhern, 2004). Details about the paper panda project have been provided, as this information was closely related to the dimensions of originality and creativity (Kelm, 2011). The paper focused on explaining how the paper panda project ensured the use of originality and creativity in the sense that no one has ever done a similar project. In conclusion, the success of this project points out that marketing managers have demonstrated the implementation of a proper marketing strategy combining the dimensions of originality and creativity. References Duncan, T. Mulhern, F. (2004). A white paper on the status, scope and future of IMC. New York: McGraw-Hill. Gronroos, C. (2004). The relationship marketing process: Communication, interaction, dialogue, value. Journal of Business and Industrial Marketing, 19(2), 99-113. Kalamas, M., Mitchell, T., Lester, D. (2009). Modeling social media use: Bridging the communication gap in higher education. Journal of Advertising Education, 13, 44-57. Kelm, O. R. (2011). Social media: Itââ¬â¢s what students do. Business Communication Quarterly, 74, 505-520. Kitchen, P. J. Schultz, D. E. (1999). A multi-country comparison of the drive for IMC. Journal of Advertising Research, 39(1), 21-38. Laurie, S. Mortimer, K. (2011). ââ¬ËIMC is dead. Long live IMCââ¬â¢: Academicsââ¬â¢ versus practitionersââ¬â¢ views. Journal of Marketing Management, 27(13/14), 1464-1478. Michaelidou, N., Siamagka, N. T., Christodoulides, G. (2011). Usage, barriers and measurement of social media marketing: An exploratory investigation of small and medium B2B brands. Industrial Marketing Management, 40(7), 1153-1159. Ng, P. (2014). 1600 pandas haunt attention! Harpers Bazaar. Retrieved from harpersbazaar.com.hk/lifestyle/entertainment/1600-pandas-hong-kong-tour-timetable-2014 Porcu, L., del Barrio-Garcia, S., Kitchen, P. (2012). How Integrated Marketing Communications (IMC) works? A theoretical review and an analysis of its main drivers and effects. Comunicacion Y Sociedad, 25(1), 313-348. Reid, M. (2005). Performance auditing of integrated communication (IMC) actions and outcomes. Journal of Advertising, 34(4), 41-54. Thun, J. H. (2010). Angles of integration: An empirical analysis of the alignment of internet based information technology and global supply chain integration. Journal of Supply Chain Management, 46(2), 30-44. Vance, K., Howe, W., Dellavalle, R. P. (2009). Social internet sites as a source of public health information. Dermatologic Clinics, 27(2), 133-136.
Tuesday, November 5, 2019
Hiv / Aids And Discrimination Essay -- AIDS, HIV, Immunodeficiency, Tube
5/3/16 English Professor HIV/AIDS and Discrimination Today AIDS still affects both men and women, predominantly African American women. AIDS was originated in Africa. As of today people can live with AIDS as opposed to years before they had the proper medication to treat AIDS, but keep in mind their is still no cure as of yet. It has been a worldwide disease that federal officials and associations tried to make up laws and ways to prevent the transmission of AIDS. According to HIV/AIDS website, HIV is a virus that attacks cells in bodyââ¬â¢s immune system. HIV stands for human immunodeficiency virus. The transmission of HIV can be transmitted through sexual intercourse both anal and vaginal sex without using a condom. Also another way to transmit HIV is by sharing needles for drugs or any use of injections in the blood. Unlike some viruses HIV cannot be rid of, you have it for life. Untreated HIV can result to the disease of AIDS ( acquired immunodeficiency disease). According to the World Health Organization (WHO) there are app roximately 36.9 million people worldwide who are living with AIDS at the end 2014. The disease AIDS has caused the federal government, along with the Olympic Organization, and Sport Organizations change the antidiscrimination laws. The changes have resulted in the creation of the American Disability Act, Rehabilitation Act applying to athletes, and providing education programs. The athletes Earwin ââ¬Å"Magicâ⬠Johnson, Tommy Morrison, and Greg Louganis. These athletes are HIV positive and faced discrimination because of the disease. After Magicââ¬â¢s announcement that he was HIV, the discussion was if he would continue to play basketball. Fellow basketball players discussed ... ... middle of paper ... ...ad an AIDS specialist come to educate and provide training for the teams. In some of the professional leagues a rookie is required to attend an orientation, that discusses financial management, handling the media, and HIV/AIDS. Magic Johnson helps to end discrimination amongst athletes and spokesman of AIDS prevention. Therefore, players that are being educated of HIV/ AIDS will understand the precautions of transmission and the knowledge will be taken throughout their careers. In conclusion, there should be no discrimination against athletes who are HIV/AIDS infected. Athletes who are infected are capable to participate in competitions, but will always be risk of transmission, although it 's possible to keep the risk very small for the other athletes who are not infected. The laws that were created to protect every individual to avoid being turned away by anyone.
Saturday, November 2, 2019
Summary Paper over Getting Real in the Classroom by Ellen Goodman Essay
Summary Paper over Getting Real in the Classroom by Ellen Goodman - Essay Example As Goodman puts it, they offered ââ¬Å"a horror storyâ⬠of the boys academic fall, presenting various incontestable evidences. Actually, the problem is that boys fall behind girls. This has given ground for discussion of the issue from the prospective of feminism and sexism, brain studies and genetic biology, all of them proving that something is wrong with males in this country. As a result Doug Anglin, a senior from Milton High School in Massachusetts, even filed a lawsuit against sex discrimination in the whole system. Goodman does not agree with Anglinââ¬â¢s claim. The author of this paper supports him with both hands. It is a well known fact that boys face problems in learning, while it is against their nature to sit still listening carefully and following all the teacherââ¬â¢s demands. Females are too timid to violate rules. Males often abandon some subject for the sake of their special individual interests. For instance, some of my male classmates were interested i n electronics and cars, others in politics, history or physics, and those interests were pursued instead of learning the academic program. As the result, when graduating males usually possess knowledge making them specialists in some field and enabling them to earn money, while females can do almost nothing but fulfill teachersââ¬â¢ and academic requirements. Teachers often curse their male students instead of paying special attention to their personalities. Perhaps, the problem is not in students, but in grown-ups teaching them. In respond to all the disturbing studies, Washington carried out a crisis intervention claiming that, in fact, those are not boys who are doing worse, but girls who are doing better. The boys have shown better results recently. The report also informed that girls tend to score higher in reading and writing, while boys are better in math and science. Yet, Goodman finds danger in these facts. Girls close their math gap faster than
Thursday, October 31, 2019
The Sale of Goods Act Essay Example | Topics and Well Written Essays - 1000 words
The Sale of Goods Act - Essay Example The other important element in such sales is reliance. The buyer must have relied on the description of the goods. In the absence of reliance on the description, the latter does not constitute an important term of the contract (Magrath, 1989). As such, there should be a reasonable understanding among the parties that the buyer will rely on the description of the goods. In Harlingdon & Leinster Enter. Ltd. v. Christopher Hull Fine Art Ltd the court held that the description of the goods constitutes an essential feature of the goods sold. Quality and suitability of the goods sold are implied terms in the contract of sale by description or sample. Implied terms render the seller of the goods liable if these goods do not conform to their description. If the contract does not incorporate a term of description, then the buyer has to establish that he had relied on the fraudulent inducement of the seller. The Court of Appeal dismissed the claim of the buyer against the seller for damages (Harlingdon and Leinster Enterprises Ltd v Christopher Hull Fine Art Ltd, 1990). Furthermore, in Birch v Paramount Estates, the defendants provided some information regarding the quality of the house. The buyer relied on this statement, and the court held that this statement was a term of the contract (Birch v Paramount Estates, 1956). In the Dick Bentley case, it was held by the Court of Appeal that mileage was a term of the contract. Moreover, a car dealer was in a better position than the customer in assessing the mileage shown by the odometer; hence, the car dealer was held liable. In our problem, even though Dusko had inspected the kitten, he had to rely on the description made by the seller. Since the kitten was not in conformity with its description, the seller is liable under the provisions of section 13(1).
Tuesday, October 29, 2019
Canada's looming retirement challenge Speech or Presentation
Canada's looming retirement challenge - Speech or Presentation Example In this particular research, LifePaths has been used to address these concerns. LifePaths is essentially a sophisticated tool for simulation which has been created by Statistics Canada. LifePaths functions by integrating data collected from the experiences related to the socio-economic conditions and project consumption of the Canadians who are yet to approach the age of retirement, both before and after they retire. LifePaths does not only take into account the income generated from the programs of public pension, but it also integrates the income and savings made from the registered retirement savings plans (RRSPs) as well as the registered pension plans (RPPs). In addition to that, LifePaths also pays due consideration to the housing equity that is accumulated, and tracks how it helps in the consumption made in the later years of life. LifePaths particularly derives its importance and value from the fact that it can model the socio-economic and demographic patterns that vary with time over the representative yet diversified population belonging to different ages over the course of time. In the study, the focus of the researchers has been the ability of future retirees to sustain the consumption patterns they have had before retirement once they stop to work. This is achieved by benchmarking every personââ¬â¢s standards of living after he/she retires and comparing them to what they had been before the retirement occurred. While doing so, the researchers take into account the diversity and change that occurs in the individualsââ¬â¢ lifetime with respect to such variables as income, savings, tax payment, employment record, and other family conditions that keep varying from time to time. What is quite important to note is that such a calculation provides the researchers with an insight into the individualsââ¬â¢ preparedness for the conditions that would occur after their retirement both within and across the various income groups. Like many other resear ches investigating the very subject concluded, this particular research verified that the system for retirement that has conventionally been in place in Canada has been conducive for healthy consumption rates in the period that follows the retirement of individuals. For individuals belonging to the low income zone in particular, the retirement system has offered great support after completion of their services. In the last two decades, people that have reached the age of retirement experienced significant support from the retirement system in Canada. However, it is important to note that in case the present economic and behavioral circumstances in Canada continue to persist over an indefinite period of time, a vast majority of Canadians are susceptible to experience difficulties in sustaining the same consumption after retirement that they enjoy during the period of their working life. Presently, no more than 16 per cent of the total population of retirees happens to be in such circ umstances which are likely to result in a considerable minimization of the consumption after the retirement, the number would increase manifolds if the present trends persist indefinitely. As many as 44 per cent of the t
Sunday, October 27, 2019
What is globalisation?
What is globalisation? Introduction The emergence of globalisation in the nineteenth century has brought about a change in the world. It has resulted in the elimination and diminution of barriers between countries, in order to aid the flow of goods, services, capital and labour between these countries. There have been various debates surrounding the concept of globalisation. The opening of the markets have been said to be a way of enabling the developed countries maintain their position of supremacy over the developing and less developing countries by allowing their big multinational companies exploit the resources of these other countries and keep the profit. (Lewis 2007). In spite of this, globalization has created a lot of new opportunities and for many nations and has required them to develop partnerships and bonds throughout the world which has played an important role in the success of some nations. Aim In a speech given by Nelson Mandela at the British Museum in 2000, he said ââ¬Å"If globalisation is to create real peace and stability across the world, it must be a process benefiting all. It must not allow the most economically and politically powerful countries to dominate and submerge the countries of the weaker and peripheral regions. It should not be allowed to drain the wealth of smaller countries towards the larger ones, or to increase inequality between richer and poorer regions.â⬠Cited in Lewis (2007).à à The aim of this essay is to examine the impact of globalisation on domestic construction companies, their projects and services in developing countries. What is Globalisation Diverse definitions have been given to globalisation, depending on the context in which it is being used. The world has suddenly become a global village, where boundaries are being removed and organisations are free to envisage, design, create, purchase and sell products in other countries making the world interconnected. According to (Govindarajan Gupta, 2000), globalization is defined as the increasing economic reliance that exists among countries as seen in rising traverse relationship with the flow of goods and services. Cope (1999) sees the process of globalisation as ââ¬Å"having two inter-related dimensions: scope (or ââ¬Å"stretchingâ⬠) and intensity (or ââ¬Å"deepeningâ⬠). On the one hand, the concept of globalization defines a universal process or a set of processes which generate a multiplicity of linkages and interconnectedness which transcend the states and societies which make up the modern world system. On the other hand, globalisation also implies intensification in the levels of interaction, interconnectedness or inter-dependence between states and societies which constitute the modern world economyâ⬠The International Monetary Fund (IMF) defined globalisation, as rapid economic incorporation countries around the world by the movement of goods, services and capital across borders. In the design and construction industry, globalisation means two major things; improved competition and improved opportunity (Russell J.S, 2000). Globalisation affects every design and construction firm both domestic and foreign. Globalisation is needed in countries to improve the relationship between these countries and to improve the economic stability of these countries. Globalisation in the Construction Industry The influence of globalisation in the construction industry is beginning to emerge; this can be seen from both external and internal factors within the industry. There is an increasing need for organisations to develop new strategies and ways of getting things done, as global competition is growing. Different organisations small, large, domestic and international are all going to be affected by this new way of doing things.à à à According to Cheah et al (2005), globalisation is bringing about new prospects for the construction industry due to the deregulation of industries and privatization of traditionally state-owned entities needing new construction or an upgrade of existing facilities which has attracted new key players from abroad. Externally, the clients are globalising. In order to serve them better and generate repeated business, engineering and construction firms have to elevate their agendas to the international level. Fundamental changes have to be made to project management techniques in engineering and construction companies if they are too maintain their standards and are to be successful in the global market place in the 21st century. Customers will expect lower costs, shorter engineering and construction periods, lower costs, shorter engineering and construction periods, high-quality materials and equipment from manufacturers anywhere in the world and prompt attention to their needs. Kini (2000). The construction industry is an important part of the development industry within an economy, particularly in an era where the rate of u urbanisation and resources continue to reduce. The construction industry plays its role in any economy as it uses materials and resources, changes the environment and affects the lives of the people living in the society. International Construction and Globalisation in Developing Countries According to Ngowi et al (2005), International construction has been defined, as when a company which is based in one country executes work in another country. Most of these companies are from advanced countries and go to carry out work in newly industrialised countries and least developed countries. Through globalisation, many doors have been opened for international construction in developing countries. Developing countries require specialized contractors for new infrastructure and buildings which their domestic construction companies might be unable to handle or do not have enough experience in the construction of such buildings. There are various explanations why construction firms expand into international markets. Some of these reasons include inactive domestic markets, development of new markets, economical utilization of resources and the realization of new prospects brought by the global economy (Gunhan and Arditi 2005). In taking international construction into consideration, there is a need to understand the risks and threats it involves. International construction is much riskier than domestic construction. The different variables which affect the international environment are not part of the domestic markets and create risk for international construction that would never be encountered in domestic conditions (Gunhan and Arditi 2005). A critical review of international business failure was done by Gordon and Arnold (1988) and White (1990) cited in Han et al (2005 p. 284). Some reasons why international business fails were pointed out and they include the following: Failure to develop a business plan. Lack of commitment from top management in the early stages of the venture. Lack of attention to the development of strategic links in the international market place. Failure to recognize the demands of operating in a multi-cultural business environment. Failure to weigh foreign requirements with respect to their social, legal, political and governmental procedures. Construction companies therefore must set up strategies in order to compete in the international market. Gunhan and Arditi (2005) carried out a survey of executives in charge of international construction in the United States to determine the most important strengths a company must have in order fully expand their business into the international market. Track Record The past performance of any organisation hoping to diverge from the domestic market to the international market is necessary. A firm or an organisation with a good track record can easily enter the international market, due to their past experience in form of reference from all their previous works. An experienced firm has a ready solution or a cheaper solution to a technical problem since it might have come across a similar problem in the past and has found a solution for it. It has exhibited through previous performances that it has the organisational and technical experience to overcome technical challenges that may come up in the course of a construction project Quak, 1991 cited in Gunhan and Arditi (2005 p.275). Specialist Expertise For a company to succeed in the international arena there is a need for specialist expertise. This gives the company a higher advantage due to the fact they have knowledge in areas that few companies can compete with them. According to Quak, 1991 cited in Gunhan and Arditi, 2005 ââ¬Å"specialists technologies enable smaller companies to carve a niche for themselves in the international market by competing for specialist subcontracts or as a desired consortium partnerâ⬠The use of new technology would enable domestic companies find jobs in sectors where expertise in that technology is needed. Project management Capability International projects tend to be in complicated circumstances such as; multiple ownership, elaborate financial provisions and different political ideologies. These projects are more difficult to manage than domestic projects as the risk involves are often numerous and less predictable. Stallworthy and Kharbanda 1983, cited from Gunhan and Arditi, (2005 p.276) There is often the need for a project manager who can handle both the business and technical side of the project. This would give the project manager an advantage, because he will be able to solve problems in all areas of the project. Influence of Globalisation on Domestic Construction Companies in Developing Countries The concept of globalization was brought about by the need for free trade between developed and developing countries. The ideology behind this was setup by the World Trade Organisation (WTO), and this was formed from the 1986 Uruguay Agreement WTO, (2004) cited in Lewis (2007) which says that ââ¬Å"the international trading system should be: without discrimination- a country should not discriminate between its trading partners (giving them equally ââ¬Ë most favoured-nation or MFN status); and it should not discriminate between its own and foreign products, services or nationals (giving them ââ¬Ënationals( giving them ââ¬Ënational treatment); Freer- tariff and non-tariff barriers should be reduced (removed) through negotiation; Predictable foreign companies , investors and governments should be confident that trade barriers will not be raised arbitrary; market-opening commitments are ââ¬Ëbound in the WTO; more competitive-ââ¬Ë unfair practices such as export subsidies and dumping products atà below cost be discouraged; more beneficial for less developed countries-they should have more time to adjust, greater flexibility, and special privileges.â⬠The purpose of this was to establish competitive markets for trade for all goods and services, including those acquired in the public sector. Globalisation has an effect on the following sectors of the domestic construction sector of the economy: Project Size The size of a project plays a major effect in selecting who the key contractors for that project are going to be. The larger the project size is, the more out of reach it is for consulting and contracting firms in developing countries. Large projects which could be broken down in to smaller projects are given as one, making it available to only large transnational companies that have the capability in terms of staff, equipments and labour to handle such projects. These projects could be broken down into smaller project such that it would be available for local firms as well as the large transnational companies. Market Access Market access, has to do with goods and services, this entails that the goods and services which are coming into any country must be treated in the same way regardless of where they are from. In the construction industry, this entitles all consultants and contractors who come from less developed countries or developing countries to have equal opportunities with large firms to the same projects in developed countries. This actually never happens. According to Lewis (2007), the large companies have higher advantage than the smaller ones; in terms of enormous physical, financial, technical and human resources that the small firms do not have the capability to have. The large firms also receive support from their home government in many areas which is not available to the smaller domestic companies from developing countries. Consequently, the local firms in developing countries tend to be doubtful about the opportunities globalisation holds for them in developed countries; this is due to the advantages the large firms have over them. Under Pricing The need for growth in developing countries has brought about an invasion of overseas contractors and consultants in to developing countries. This has a negative impact on the domestic construction companies. Lewis (2007) explains that these foreign contractors are keen to get into that region, that they may take strategic decisions to make a loss in the construction of that project just to make sure that they win the contract. The local firms do not have the available resources to compete with them on that basis and therefore loose the contract. Opportunities associated with International Construction for Domestic Companies in developing countries The emergence of the new global economy has brought about extraordinary opportunities for growth in developing countries. Hans et al (2005) explains that at national level, the amount of international construction plays a big role in the nations trade balance. They also balance the growth of their company to contribute to their security through increased global activities and so to reduce the effect of the cyclic nature of their work load. The different opportunities associated with international construction for domestic construction companies include: Increased long term profitability One of the main reasons for expanding from domestic to international construction is for the increase in the long term productivity of that company. The expansion of these companies takes place when their own domestic markets are not doing so well and there is a need to expand into other countries which offer profitable opportunities for the company. The economic state of affairs of the most important countries often affect the economic situations of many other nations and this effect actually takes a lot of time before it reaches these nations. Expanding into the international market therefore, is a good way to survive the setbacks in a country and increase the profitability of that company (Gunhan and Arditi 2005). Ability to maintain shareholders return The ability of the domestic company to maintain its shareholders return creates the need for the company to be involved in international construction. This could be very useful for the company, for instance in times of economic recession in a country there is another country in which profit is being made by that company (Gunhan and Arditi 2005). Ability to take advantage of globalization and openness of market Globalisation has given the domestic construction companies an advantage of having open markets which gives the companies a lot of benefits. This increases the competition for a project because now both domestic and foreign companies are allowed to bid for the project. Even though globalisation has increased the competition within the geographical borders of countries, it also allows access into markets which were previously inaccessible. There is a need for construction companies to recognise this change in the environment. Sillars and Kangari, 1997 cited in Gunhan and Arditi, (2005 p.279) Ability to take advantage of privatization programs in emerging economies In developing countries, the amount of capital needed to achieve the rate of market expansion needed and this is often dependent on the foreign investment available to sustain a privatization programme. Miller, 2000 cited in Gunhan and Arditi (2005). Privatization is being seen as a way of creating opportunities for construction companies to carry out projects in countries, this is for both local and foreign companies. Key areas a domestic construction company must focus on in globalization In this new era of globalisation and free market trade between nations, changes will have to be made in companies in order to keep up with the new way of doing things. The thinking process of these companies has to be changed in order to compete with other companies. The following areas need to be taking into consideration in order to be a highly successful global construction company: Organisation The organisational structure of accompany is important in achieving global excellence. There would be a need to set up a system in which work will be done faster and would meet the clients needs. Information technology systems According to Kini (2000), if there is no effective Information technology (IT) system in the company, they would only be global in their names. The information system of the company should have the capability to provide all the companys offices with real-time access to data should be designed with hard ware and software that go well together, and should use incorporated software which will provide the information to the managers when needed. This would enable accurate information to be gotten by the project manager at any time and allow fast access to the information when needed. Thinking globally There must be division of work among engineers so that the time frame of the work can be shortened and work will go on consecutively. There is a need for a variety of specialist for different areas of engineering in order to be able to review the impact of change on any area in the design. According to Kini (2000), when thinking globally, the followings things must be put into consideration to access some certain issue: Division of work: There is a need for the project manager to establish how the work is to be divided in terms of the customer requirement, the manpower and expertise needed. Subcontractors have to be selected before the design phase of the project for specialist needs of the project. Key suppliers: The key suppliers should be located within the area with low manufacturing costs and convenient transport connections. The relationship between the suppliers should be one of partnership for mutual benefit in the project. The construction plan:à The construction plan should be checked before the start of the design. The design schedule needs to be developed with reference to the construction sequence; this would be used as the source of coordinating the design at the various office locations and placing orders with suppliers. Worldwide suppliers There is a need for the use of worldwide suppliers in order to get the best price available. The utilization of the global market place would enable the company get lower rates for labour and raw materials. There would be need to ensure that theses suppliers meet the requirements of the company. The project manager would have a choice in the selection of the supplier to be used and the performance of this supplier can be monitored. Global construction The company must be familiar with local construction methods and materials used in that area. Due to the varying site conditions, the need might arise to import some materials. There is a need for the participation of the local engineering company in the project to advise the project team on the use of these local materials and also in the hiring of skilled craftsmen within the project. This is to ensure that the maximum satisfaction of the client is guaranteed when the project is completed. Quality The whole aim of going through the steps listed above is to ensure that the overall quality of the project meets the clients expectation. There is a need for all members of the project to be aware of the clients needs for the project, this would enable them know the kind of standards to be achieved in the project.à Conclusion Globalisation has brought about new opportunities for construction companies. Globalisation holds the greatest opportunity and risk for domestic construction companies. This is determined by the strategies implemented by the company in order to ensure that they are affected by the positive effects of globalisation. In the global economy, both the domestic and foreign companies have to face competition in other to be successful. There is a need for contractors to understand the risk associated with globalisation such as political, economical, cultural and legal project conditions; theses can affect the goals set by the firm when dealing with a strategic market. However, for those domestic companies who are willing to enter the international market, globalisation holds new prospects for them as long as they have identified most of the risks and put in place strategies on how these risks can be mitigated. Therefore globalisation must be embraced by both foreign and domestic companies so that they dont left behind. Bespoke Form of Contracts: A Scourge or Necessity? Bespoke Form of Contracts: A Scourge or Necessity? Chapter 1 Introduction Research Rationale The use of standard forms of contract, FIDIC Red book (Red Book Engineer/ employer designed Contractor executed) was introduced in the UAE during the late 80s and early 90s, more specifically on Dubai Municipality infrastructure projects by the Dubai Municipality, later been transformed to RTA in 2006. Ever since FIDIC based bespoke forms introduced in the UAE, it has been used extensively in the construction industry, the Red book based FIDIC forms are extensively used in different types varying from lump sum to re-measurement contracts by many large organizations. Every project is associated with risk and is inevitable and the impact is spread across the project. Whilst the intention to introduce a standard form of contract was to achieve a balance in terms of risk sharing between the parties, conversely at a later stage clients started amending the standard form of contracts to safe guard their interests. Many such bespoke versions did not achieve the intended purpose as it became one sided due to the alterations. The one sided contracts, in other words i.e. by drafting partial contracts to safe guard the employers risks and financial positions will have a tendency to impact the construction cost. If the risk is high, the cost increases proportionally (Mohamed Hartman, 2000, p 15) UAE as a country has high potential and growth compared to the neighboring Gulf countries in the recent years (2003 2008), which led to many fast track infrastructure and building projects, most of those are innovative, having ambitious aspirations to become international land marks, having the common feature of shorter durations. One of the main reasons for adopting fast track projects was to reduce the financial burdens (loans and repayment period) and to minimize the risk for escalation due to the construction boom in the region. Also in a raising market, the cost of the construction was proportional to the duration of the project as the contractors were including the risk for escalation in their bids. A few examples for such land mark projects with shorter duration captured the attention are Burj Khalifa tower, Dubai Metro, Palm Island and Dubai Mall. The multinational construction interface between the parties and culture stipulated the importance of using standard forms of construction contracts in the UAE, one of the main reasons to use standard forms of contracts are the familiarity among the parties, which has been used across many developments worldwide, even practiced at courts, assumed to be understood by parties, the risks are apportioned in a balance way and understood by even the stake holders, reduced legal and construction cost. As mentioned above, one of such standard form of contract, FIDIC 1987 4th edition red book was introduced by Dubai Municipality in early 90s with amendments to the original form (bespoke version is called as Dubai Municipality general conditions of Contract), later been followed by many public and private sector clients in UAE. Many such amendments in the creation of bespoke versions of FIDIC forms have defeated the intended purpose of achieving a balanced version of contract By the mid of 2006, many clients started using bespoke versions of new FIDIC i.e. FIDIC 99 Contracts, however there is a significant difference between these two forms (FIDIC 1999 FIDIC 1987) of contracts in many areas. Like any other place in the world, the competitions in the construction industry among the contractors are very high in UAE also. Many clients in the region, whilst using open or selective tendering (as they invite tenders from their own tender pool), before and after the current economic crisis, do have the habit of awarding the works to the lowest bidder. In order to overcome the competition in the market, the contractors at times started under quoting the works, were trying to recover through variation and claims at a later stage. This situation resulted in arguments and disputes due to the wrong interpretation of the forms of contract used by different parties, in addition, the unbalanced and void bespoke versions contributed much to these kinds of disputes. Many such disputes were revolving around the poor interpretation and understanding of the variations clauses, leading to claims and disputes on fast track projects. The intended purpose of this dissertation is to identify The essential clauses needed to administer a contract The importance of making right interpretations while using contracts An overview of the bespoke versions of contracts Research Methodology A detailed analysis of Variation clause in Nakheel Conditions of Contract ( bespoke FIDIC 1987) and the possible interpretations by various parties to the contract, briefly stating the difference between 1999 1987 based forms clauses that relates to variation and varied work clauses. Identify the potential difference between the two bespoke versions i.e. FIDIC 1999 1987 4th edition Nakheel Conditions of Contract on major clauses. A case study on a dispute from ALDARs Conditions of Contract (bespoke of FIDIC 1999) on variations while using the bespoke versions of contract Proposed study chapters The intended study focus on the meaning of construction contracts, their existence and the different forms of contracts. The literature review is covered in the first four Chapters, Chapter 2 covers the use of different forms of FIDIC contracts, including a brief history of their start in the UAE, Chapter 3 focus on the essential clauses needed for the administration of any forms of Construction contracts, Chapter 4 an analysis of Nakheels conditions of contract (bespoke FIDIC 1987 4th edition) variation clause, the possible interpretations by different parties to the Contract, Chapter 5 a comparison between Two bespoke forms of Nakheels Conditions of contract (FIDIC 99 and FIDIC 87 4th edition) on major clauses, Chapter 6 a survey to identify whether the employers achieved the intended purpose by using bespoke versions, Chapter 7 analysis of the data collected ,chapter 8 recommendation. An overview of the construction Contracts Construction contracts are generally classified as Oral (when the act will not apply) or written (if the other criteria are met, the act applies). The form of written contracts are again classified into i. A simple exchange of correspondences; ii. A tailor made written agreement; iii. A standard form such as JCT,Fidic etc; iv. Standard terms and conditions of the business. Contract in broader term is defined or expressed as conformity between two or more person i.e individuals, businesses, organizations or government agencies to carryout, or to abstain from doing things in exchange for something of value. Contracts can be oral or written, using formal or informal terms. If one party to the contract fails to live up to its part of the bargain, there shall be a breach and certain remedies for solving this is available. The expressions of the contract who, what, where, when, and how of the contract describe the binding promises of each party to the contract. In other words the significance of the agreement becomes important only when a breach occurs by the counterpart and it becomes necessary to protect the right of the other party (http://law.freeadvice.com/general_practice/contract_law/contract_agreement.htm) and the breach of contract is recognized by the common law and the remedies are available as well. On the other hand, the strongest contract, in terms of enforceability, shall have an offer, acceptance with considerations for the exchange, the terms of such an agreement shall be without ambiguity, and is signed by the parties to the contract who has the proper capacity to enter into the contract. Weaker contracts can be classified as verbal agreements or contracts agreed by parties in direct violation of state or federal laws of the country. There are several aspects related to valid contracts; in fact, an entire course in law school is often devoted to contract law (http://www.wisegeek.com/what-is-a-contract.htm). John Adriaanse (2007) quoting Lord Diplock who classified construction contract as ââ¬Å" the sale of goods, work and labor for a lump sum price payable by installments as the goods are delivered and the work done. Decisions have to be made from time to time about such essential matters as the marking of variation orders, the expenditure of provisional and prime cost sums and the extension of time for carrying out the work under the contractâ⬠. He also stated that ââ¬Å"a construction contract is best described as a complex web of competing interestsâ⬠. At the same time Charles.S. Philip (1999) defining contracts as ââ¬Å"binding agreement between two or more persons or parties construction contracts are defined as agreements, oral or written, executed between Clients and Contractors for construction / maintenance work done for compensationâ⬠. In another definition ââ¬Å"we must understand that a construction contract is merely a set of criteria, or expectations, t hat bind the contracting partiesâ⬠(Gilbreath, 1992) The basic elements of a contract are an offer, acceptance of the offer with considerations. This can even be described as concurrence of wills or ad idem or meeting of the minds of two or more parties (http://www.alway-associates.co.uk/legal-update/article.asp?id=165).Consideration, on the other hand, makes sure that e that something is exchanged. In certain situations, the law requires the consideration to be adequate, which is, a relatively reasonable price, or ostensible, where even a Dirham will do. Contracts may or may not be enforceable by law. The good example is; the agreement between the parent and child cannot be enforceable by law whereas the agreement for a loan probably enforceable by law. On the other hand whether a contract is enforceable by law or not depends on many factors, the primary and most important factor being whether the parties to contract anticipated / intended the contract to be legally enforceable or not. Most of the construction contracts are bilateral contracts, some cases the unilateral contracts becomes bilateral with considerations. Contracts can be bilateral or unilateral. In a bilateral contract, each part makes promise or promises to the other party. A good example is while selling a home, the buyer promises to pay the seller AED 1 Million in return the seller agree / promise to deliver the title of such property. Where as in a unilateral contract only one party to the contract make the promise. A good example is the reward contract. X promise to pay a reward to Y if Y find Xs stolen car. Here Y is not obliged to find Xs stolen car, but X is obliged to pay the reward to Y only if Y finds Xs car. The consideration for the agreement is Ys trust on Xs promise or Y giving up his legal right to anything he wanted at the time he was in the process of finding of the car. Here, conditions precedent to Xs obligation to pay is the finding of the car, although this is not a legal condition precedent as technically no binding contract has arisen until the time car is found (because Y hasnt agreed / accepted Xs offer until he find the car, referring back to the basis of contract as it requires offer, acceptance and considerations), the terminology ââ¬Å"condition precedentâ⬠is used in contract law to establish a condition of promise in an agreement. For example, If Y has promised to X to find the car, and X has promised to pay Y when the car was found, Xs offer has been considered as a condition attached to it, and an offer and acceptance have been occurred. This is an incident in which a condition precedent attached to a bilateral contract. In the construction industry, the significance of having a balanced contract agreement has become essential to avoid disputes and to facilitate a smooth administration during the construction period. According to Lord Lathams report 1994, ââ¬Å"constructing the teamâ⬠, construction is a very unique process, the construction industry is different than the manufacturing and other industries, each project is unique with its nature and conditions, having heterogeneous conditions and situations, however definition of Latham for contracts not limited here, but include the design activities, advise and other legislations (Adriaanse 2007) which specify many details that a construction contract should take care of. Chapter 2 The Importance of using Standard forms of Contract 2.1 Introduction The adversarial nature ([Cheung et al., 2006] and [Cheung and Yiu, 2007]) and inborn risks (El-Sayegh, 2008) of the construction industry contributes to the speedy developments of construction disputes. Construction disputes are originated by many sources (Cheng et al., 2009). One of the main sources is the lack of understanding on the Contracts. Deprived interpretation and poor understanding of the construction contracts make the contracts clauses ([Broome and Hayes, 1997], [Cutts, 2004] and [Styllis, 2005]) and legalese ([Cutts, 2004] and [Candlin et al., 2002]), which results in differences between the parties to the contract on their legal rights and responsibilities. It is to be noted that this statement is justified in a study conducted by Mohamad and Zulkifli (2006), where majority of the contractors reported about the problems in understanding the contract documents. It is to be concluded that contractors need to be well versed in the interpretation and understanding of claus es stated in contracts. Dispute resolution methods at the early stages of disputes are the soft-skill resolution technique, i.e. avoidance (White, 2002), which offers a practical approach to prevent the predictability of conflicts that may occur in a project by understanding the form of contract used. The main objective of dispute avoidance technique is to promote teamwork and to create a harmonious atmosphere (Cheung, 1999). Thus, a proper appreciation of the construction contracts to the stakeholders will prevent a dispute from rotting, although a total elimination may be impossible. The importance of this chapter is to make a improved insight into the need for clarity of contract documents. Furthermore, it will assist contract drafters and experts review and clarify the clauses of the contract form in an understanding way to the parties. After the parties understand and consent to the clauses stated in the contract, the parties would recognize their obligations and contractual rights as required in the contract. 2.2 The need for contract clarity The need for this research comes up out of many conflicts identified in the construction industry due to the usage of different versions of contracts with amendments. A good example is, the senior officials of a leading developer in Dubai alleged that false ceiling collapsed and burst the pipes above the false ceiling at the buildings were related to the supervision problem and lack of access to the project site by the engineers (Developer Eyes ââ¬Ësupervision authority2007). The engineers were not allowed on site due to some health and safety construction complications at certain times. This resulted inadequate supervision for the works. The problem heated up although the standard contract form clearly points out that the engineer, as being responsible for the overall supervision and direction of the project. Additionally, the Engineers representatives had the right of access to the works and construction site of the contractor (Clause 23 of bespoke Form). An explanation for this dispute was, contractor misinterpreted the conditions of contract and also failed to understand the legal obligations outlined in the contract. Thus, the question of clarity of contract conditions in the contract must be resolved. In addition, the court usually try to find out the intentions of contracting parties using plain, ordinary and popular meanings of the words. Scott vs Wawanesa Mutual Insurance Company brought out the clarity issue to the court attention (1994). The judge held that if the language of an insurance contract is ambiguous, the contra proferentem doctrine applies, that is the rule against the party who impose the inclusion of the ambiguous clause in the contract. On the other hand, if the wordings are unambiguous, the courts would not give any different meaning from what is expressed in its clear terms, unless the contract is highly unfair or hold an effect contrary to the intention of the parties (Duhaime, 2007 Duhaime, L., 2007. Part 7: interpretation of previous termcontracts.next term Duhaime Law, Victoria, Retrieved 22 May 2008, from .Duhaime, 2007). Thus, clarity of contract clauses is very important for the construction industry too. This shows the importance of understanding the c ontract by the contracting parties. Besides, the legalese takes place in the contract. The use of highly formal and technical language in legal documents disturbs interpretation (Feinman, 2003). Legal drafters made most damage by shrouding the mysteries of contracts with complex language and technical legal terms (Cutts, 2004). The deficiencies of legalese are mainly due to the unnecessary length and complexity. Sometimes, there are more serious errors that go unnoticed (Hill, 2001) because the interpretation of the contract clause was not actually written or interpreted in the contract (Thomas et al., 1994). Legalese would result the contracting parties fail to appreciate the contractual rights and obligations in a project (Semple et al., 1994). In the end, it shatters the working atmosphere of the project (Wang and Yang, 2005), resulting claims and delay to the project delivery. 2.3. Understanding the importance of standard form Construction contracts are well written agreements duly signed by the parties to the contract to define their contractual positions, relationships and obligations (Zaghloul and Hartman, 2003). The conditions of the contract are critical to ensure that the parties are put up by rules and regulations (Semple et al., 1994). The reduced understanding of the construction contract usually lead to construction disputes, as highlighted by many researches such as ([Thomas et al., 1994], [Semple et al., 1994], [Broome and Hayes, 1997] and [Mohamad and Zulkifli, 2006]). It is simply because of the reason that the parties could not achieve their contractual expectations (Harmon, 2003). Dubai Municipalitys be spoke forms of contract was followed and amended by various developers in the UAE industry. The origin of the contract can be traced to FIDIC Red Book 1987 standard form of contract. It had several amendments and revisions over the years by many developers and private sector clients in the UAE. The latest version of this form of contract was formulated in 2001 (Dr.Sam, 2004). The old-fashioned language used in it makes it difficult to understand and make the right interpretations. This is mainly due to lack of clarity and use of legalese in the contract clauses. Table 1 and Table 2 give a summary of clarity and legalese problems identified in the contract clauses of this Form. 2.4 History of FIDIC and other Standard forms of Contracts used in UAE Industry The most brilliant designs for any civil engineering or building project would remain in the documents and paper unless turned into reality by operations. This transaction process requires i.e. from the design to the reality requires the selection of the contract that reflects the aspirations of the parties as well as the demands of the successful project. The essential skills required for a Contract Administrator is the selection and management of proper form of contract and for each project, both the key criteria needed to be considered and risks should be identified and allocated, before the selection of the proper form of contract. This can be done from a range of standard forms of contract. In the UAE, the FIDIC form of contract (red book) was introduced in the early 90s for the infrastructure projects by Dubai Municipality, later been followed by many major clients such as Emmar, Nakheel and Damac. The standard form of contract identifies the roles and responsibilities of the parties, their agrents and provides rules to protect direct parties from doing wrong. The selection of the form of contracts depends on various criteria such as the responsibility and position of the parties involved in the contract. For example, factors such as , magnitude and nature of the works, procurement method (Lump sum, Measurement, Cost reimbursement), Design responsibility ( whether by the Employer, Part by the contractor or fully by the Contractor), roles and relationships (Client, Contractor, Design team and Specialists), the type of cost control document used (such as bill of quantities, schedule of rates, priced specification or contract sum analysis),Payment method (stage, time rela ted, turnkey) and Time (Open, fixed, acceleration and Damages). (Martin Brook, third edition, p 33-44) The various such forms of contracts available are JCT written by the Joint Contract Tribunal, NEC New engineering contract, a form recommended by Michal Lathams report (1994) for the use of both public and private sector clients because of its flexibility and written in simple English, ICE provided by the Institution of Civil Engineers, GC/Works/1 for Government Contracts, ACA Project Partnering Contract- PPC 2000, FIDIC..etc. A brief history of the FIDIC form of contract along with available forms are described below as the dissertation is focused on the FIDIC, the most commonly used for both building and Civil Engineering projects in the UAE. The Fà ©dà ©ration Internationale des Ingà ©nieurs-Conseils (ââ¬Å"FIDICâ⬠) organisation was founded in 1913 by France, Belgium and Switzerland. The UK joined only in 1949. The first edition of the Conditions of Contract (International) for Works of Civil Engineering Construction was published in August 1957 having been prepared on behalf of FIDIC and the Fà ©dà ©ration Internationale des Bà ¢timent et des Travaux Publics (FIBTP). The form of the early FIDIC contracts was prepared in line with the fourth edition of the ICE Conditions of contract. One difference with the initially published FIDIC contract was that they were based on the design being provided by the Employer or his Engineer to the Contractor. It therefore became best suited for various civil engineering as well as to various types of infrastructure projects such as roads, bridges, dams, tunnels and utility works such as water, sewerage etc. At the same time it was not so suited for contracts having major items of plant that were manufactured away from site. This led to thought of having the ââ¬Å"Yellow Bookâ⬠(the traditional one is known as the ââ¬Å"Red Bookâ⬠it was called as Red book because of the red color of the cover page) published in 1963 by FIDIC for mechanical and electrical works. This had the provisions for testing and commissioning which was more appropriate for the manufacture and installation of plant. The revised (second edition) was published in 1980. The revised editions of both Red book and yellow books FIDIC was published in 1987. A most important feature of the revised edition of Red Book (or ââ¬Å"Old Red Bookâ⬠)was provision for the Engineer to act impartially while giving a decision or in any action which affect the rights and obligations of the parties, whereas the previous versions assumed this implicitly. Although this talk concentrates on the new FIDIC forms, it should be remembered that the Old Red Book remains the contract of choice throughout much of the Middle East, particularly the UAE. A new form of contract was published (known as the ââ¬Å"Orange Bookâ⬠) in 1995 for the use on projects procured as design and build or turnkey, dispensing with the Engineer, providing for an ââ¬Å"Employers Representativeâ⬠who, while determining the value, costs or extensions of times need to: ââ¬Å"determine the matter fairly, reasonably and in accordance with the Contractâ⬠. However, in 1999 FIDIC published new versions of the Red and Yellow books together with a Green and silver Books called as the short form of contract and turnkey contracts respectively. One of the significant differences between the 1999 edition and 1987 4th edition was the arguably diminishing role of the Engineer; a fair interpretation is making the Engineer as an assistant to the Employer. The other differences between these two versions will be discussed in the following chapters of this dissertation. Chapter 3 3.1 The important clauses and terminologies needed contract administration and a comparison with the bespoke version selected for the dissertation work During the process of making bespoke versions of contracts by amending the articles of the standard forms shall be done with extreme care as they run the risk of damaging the consistency as well as the integrity of the contract and the other contract related documents. Most of the standard conditions of contracts are developed over many years and been highly complex to deal with the unforeseen problems and legal decisions including statute law and an ever changing world. The contract must state clearly the documents that are having the status of the contractual documents, following are the documents that shall be considered as the contract documents. i. The signed agreement ii. Tender iii. General and particular conditions of contract iv. Drawings v. Bills of Quantities vi. Specification vii. Schedules viii. Program There are certain clauses required in the contract to facilitate the smooth administration of any contracts. The following are the commonly found and essential clauses required in construction contracts between the employer and the contractor irrespective of the forms and types of contracts. A detailed analysis with its importance is analyzed in this chapter for the dissertation purpose. Possession the date by which the employer shall provide possession to the contractor of the site to enable the work to begin, In FIDIC 1987, the commencement of work is described under the clause 41.1. The commencement shall be given with in the period agreed in the appendix to tender and failure to provide possession to the site within a reasonable time is interpretted as the breach from the employer.(CEM course material, Construction Law, chapter..). Under FIDIC 1987, the employer will, with the Engineers notice to commence the works, give to the Contractor the possession of the site (E.C Corbett, FIDIC 4th Legal Guide, p 238-239). Failure to give possession is dealt under clause 42.1, under such circumstances, the Engineer shall, after due consultation with Employer and Contractor determine Contractors entitlement for extension of time and also the associated cost, which shall be added to the Contract price, notify the Contractor with copy to the Employer (E.C Corbett, FIDIC 4th Legal Guide, p 238-239). Hence this clause is essential while drafting an agreement or contract for the administration. Completion The date, by which the contractor shall have the obligation to finish the work, this can be extended under various provisions if the employer or his contract administrator / engineer grant extension of time. Under FIDIC 1987, upon substantial completion of the work, the Contractor serve notice to the Engineer with copy to the Employer for the taking over certificate, and if the work in the view of the Engineer is substantially completed, issue a taking over certificate with in 21days. This is a very essential clause in any form of contract as in the absence of a completion date in the contract; the contractor shall be required to finish the work only within a reasonable time(ref: John Uff..). Non completion this clause shall deal with the situations when the contractor fails to complete the work by the agreed completion date or the extended completion date. If the work is not completed within the specified time, due to any reasons that the contractor is not liable or any concurrent delays, the contractor get the benefit of having an extension time with associated costs. However for Contractors own delay, the contractor shall not be entitled for the entitled for any extension of time, the remedy available in the contract is to make payment to the employer as liquidated damages or penalty as mentioned in the contract. Hence it is very essential to have a non-completion clause in agreements and contracts. Liquidated damages / Penalty Liquidated damages are usually amount is fixed and genuine pre-estimate of the loss in cases of breach, easy to calculate on building or commercial projects, however not easy on infrastructure projects. Whereas penalty is also a fixed amount, the contractor needs to pay this if a breach occurs. However in UAE, the term penalty is applicable as the same is followed in civil court. Whereas, under the English Law, Liquidated damages are applicable, if the sum mentioned in the appendix to tender is penalty and not the liquidated damages, the Contractor under the English law can challenge it, however under the UAE Law Civil code, Article,.. the penalty is applicable. Most of the Countries penalties are not acceptable. Refer, for example, a few leading cases on penalties, Dunlop Pneumatic Tyre Company Ltd v New Garage and Motor Company Ltd [1915] AC 79, 86-87, where the House of Lords recognized the principles on how to decide a damage clause that is actually a penalty and thereby unenforceable. ââ¬Å" This case was cited by the High Court of Australia in Ringrow Pty Ltd v BP Australia Pty Ltd [2005] HCA 71, section 12, and by the Supreme Court of Ireland in ODonnell v Truck and Machinery Sales Limited 1998 4 IR 191. The Supreme Court of Canada has adapted a similar approach in Elsley v. J.G. Collins Ins Agencies, [1978] 2 S.C.R. 916, 946, and does not allow for any recovà ery of an amount exceeding the actual damageâ⬠(J.Frank McKenna (2008) Critical Path. Reed Smith, p1-6). Hence this clause is essential in a contract or agreement. Defects liability- The defects are to be rectified with the period mentioned in the contract. Failure to rectify the defects within a reasonable time will enable the employer to engage a third party to do the work and deduct the amount from the contract sum. Under FIDIC 4th edition, clause 62 deals with the defects liability period. The issuance of the defects liability certificates signals the completion of the Contract and under FIDIC form, such a certificate shall be issued within 28days from the completion of Defects liability period, in both forms of FIDIC 99 as well as in 87 including the bespoke versions, the defects liability period shall not be extended beyond 2 years from the taking over certificate (E.C Corbett, FIDIC 4th Legal Guide, p391-392). Variations any variations should be authorized by the employer before the contractor is entitled for the payment. Variations are common to traditional procurement path than the Design and Build system (Ashworth, 1998). In construction due to the complexity of construction works it is almost impossible to complete a project without changes to the plans or the construction process itself however good and the complete the design details are at the start of the project. Baxendale and Schofield (1996) define variation as any change to the basis on which the original contract was signed. Construction plans are formed form of designs, drawings, quantities and specifications earmarked for a specific construction site and Variations are imminent in any construction project due to various reasons from finance, design, aesthetic, geotechnical, geological, weather conditions to feasibility of construction. Hence it is essential to have a provision to instruct and ev
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