Business Procurement Assignment Sample

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Discuss the benefits and disadvantage of having local content clauses in a construction contract for a project

Companies in more developed industrial nations may use the Local Content initiative to guarantee that local suppliers get contracts and develop higher-valued activities like R&D. More early action may be necessary in less developed nations, such as teaching suppliers on conventional contractual and procurement methods, providing funding for suppliers, or providing education and training in technical skills (Caramento, 2020). No matter where they do business, organisations should develop a framework for developing Local Content regardless of whether they use an internationally recognised approach. These projects should be evaluated for their financial and strategic benefits to the host countries and firms, and a methodology should be devised to determine that value. There should be methods for analysing costs and probable implications on the project timetable, along with the viability and sustainability of each Local Content Policy, along with threats to the company's reputation as well as financial losses.

It is advantageous for both the host country and the foreign construction sector to use local provisions while building a structure. There are various advantages to using it, and these are just a few of them. The first benefit is that it provides a feeling of security to both the contractor and the customer. Because of the security guarantee provided by a performance clause in international building projects, both the contractor and the host developing country gain from these endeavours (Östensson, 2018). It is possible that terrorists will be able to more easily breach national security because of the flaws of large multinational construction businesses. According to this, there is a risk that the host country would pose a danger to the safety and security of the contractors. Contractors cannot rely on the existing security situation in Haiti, for example, to provide them with adequate safety. While local provisions are more difficult to enforce, they make it simpler for the contractor to transfer technology to the customer in accordance with the specifications agreed upon. In terms of technology, the contraction business is increasing at an alarming rate. An endless stream of new technology advances seems to be coming out on a regular basis (Olawuyi, 2019). Utilising local experience may be necessary in order to successfully introduce this technology into a new market, such as Turkey. The workforce terms of the contractor and the client, on the other hand, will have an impact on the outcome. Another advantage of employing language that calls for the use of local products is that it makes it easier for contractors to adhere to local regulations. It is necessary to create conditions and laws that are specific to the foreign building project in order to guarantee that the constrictor conforms to local regulations.

It demonstrates confidence, trust, and respect for the host country's governmental institutions when a certificate is signed by the construction crew stating that the structure complies with the country's laws and regulations (Ablo, 2018). It is critical to have local content criteria in place before making a commitment to a supply and performance agreement. A significant portion of the raw materials used by most multinational corporations are not easily available in their native countries. Therefore, the nations that are hosting the event make these documents accessible to the public on their own websites. This method is likely to result in the formation of customer-hosted supply-and-performance agreements. While collaborating on the creation of contemporary houses, the United States and Turkey established a supply and performance relationship.

There are several advantages to using local resources when working on a worldwide project, but there are also some drawbacks to doing so as well. These criteria, for example, may threaten the political and social stability of the host nations (Chen and Landry, 2018). The presence of international construction firms working in the host country raises the possibility that terrorist attacks or armed robberies may occur there. Some of the employees of these firms wind up kidnapping or terrorising members of the surrounding community. Local content limitations may have an unfavourable effect on the natural resources of the nation in which they are implemented. Natural artefacts that are representative of a country's past are considered less essential by certain foreign construction companies. While developing these items, it seems as though they are dismantling them without any consideration for the potential consequences. In addition, some international construction companies bring with them a wave of cultural disruption that has an impact on daily life in the country where they are based. Job outsourcing to contractors in other countries is becoming more popular among government agencies. This results in widespread adoption of their social and cultural practises by a diverse range of local inhabitants in the host nation (Bao et al., 2019). It is possible that a multinational corporation from the United States would have an influence on Nigerian societal standards.

Discuss the issues involved in ensuring the highest ethical standards, from the perspective of a UK based cost management professional services

The evaluation of legal and ethical factors is critical when a firm intends to expand its operations worldwide. Organizations must overcome significant moral and ethical obstacles as well as make tough decisions in order to be successful in their international growth efforts. When it comes to issues such as outsourcing and working conditions, child labour, trust and honesty, supervision, human rights, religion, politics, the environment, and corruption, it is rare for ethical difficulties to arise in an international corporation (Mittelstadt, 2019). However, when it comes to issues such as outsourcing and working conditions, child labour, trust and honesty, supervision, and corruption, it is rare for ethical difficulties to arise in an international company. All federal, state, and municipal rules and regulations must be followed by businesses that do business in other nations. Just a few of the topics addressed include worker safety, environmental preservation, financial transparency, and civil rights protections.

If a company is unable to adjust to cultural variations, it is possible that its worldwide success or failure will be decided by this variable (Ng, 2018). Please keep in mind that each culture or nation has its own history, customs or traditions, and set of ethical concepts that should be considered. Because of the variations in language and cultural traditions across different nations, a firm may need the services of translators when working with partners and customers from other countries. It is possible that there is an issue with gender inequality in countries where women do not have the same rights as men. It is possible that some religious and cultural festivals may place restrictions on the conduct of commercial activity (Greenhalgh et al., 2019). It is essential for a global firm to adhere to ethical and cultural standards in order to be successful in a particular location and to earn the confidence of its consumers and business partners. Because of the growing importance of international commerce, there is a rising need for skilled professionals who are conversant with foreign markets, commercial practises, cultural considerations, and ethical dilemmas that might emerge while doing business in other countries. Government employees who are knowledgeable in their area, or who think that it is in their best interests to speak up for integrity and anti-corruption, would not be able to resolve the problem in the absence of competent government officials in their field (Jennings et al., 2018).

Generally speaking, the Code of Ethics acts as a proclamation of the "basic principles" that drive the civil service's professional conduct and behaviour in its widest meaning. These days, public sector codes of ethics tend to be focused on broad, overarching values such as honesty and accountability, while paying little attention to how these notions should be applied in specific circumstances, such as the workplace.

Codes of Behaviour may be used to create and enforce core principles and ideas within an organization's culture (COB). It is envisaged that these standards of behaviour would be used in a broad range of situations. All Western "Codes of Ethics" for public officials have provisions that are similar to both of these traits in some form or another (Chams and García-Blandón, 2019). While ethics may be addressed in a general sense, while developing a Code of Ethics, it is more common to concentrate on specific behaviours or relationships. Since the early 1980s, codes of ethics have included some of the most fundamentally expressed concepts and prohibitions, as well as a significant amount of procedural detail, among other things.

Consequently, the difficulties faced by a police officer are clearly distinct from those faced by a teacher or a federal government employee. True difficulties that they meet are drastically different from what they were before they placed the principle of Integrity at the core of their work. Instances may be produced indefinitely and there is no limit to the number of instances that can be created (Rezaee, 2018). Since joining the Employment Appeals Tribunal 15 years ago, I've learnt that codes of ethics, on their own, have little or no value in disciplinary processes, and that they should be avoided at all costs if feasible. The risk of disciplining an employee on the basis of broad ethical principles will not be taken by a company's management if there are no clearly defined standards of behaviour in the organisation. If they do, there is a good chance that they will prevail on the appeal.

Anytime anything like this happens, managers will purposely ignore the incident in order to avoid taking disciplinary action right away. In this way, a code of ethics may be utilised to justify and legitimise immoral and corrupt behaviour (Nicolescu et al., 2018). Instead, efforts to establish a framework for discipline only result in creating a culture of compliance in order to avoid being penalised, rather than an atmosphere that stimulates individuals to achieve at their maximum levels. For a "compliance attitude" to be effective in public administration or Civil Service Reform, it is first necessary to prevent the likelihood that such consequences would arise in the first place.

Putting the Public's Interests First is an important principle.

Civil employees are required to maintain and strengthen public trust and confidence in government by demonstrating the highest levels of professional competence, effectiveness, and efficiency, as well as by adhering to the Constitution and laws and working hard for the public good (Stahl et al., 2020).

Transparency

Civil employees and government officials are required by law to make the most of their positions of authority and resources available to them (Stahl et al., 2020). Those in charge of making judgments should be held responsible for their actions and should be prepared to justify their decisions.

Integrity

Officials and civil officials have a responsibility to make judgments and act only in the interests of the general public, and to do so regardless of their own personal interests in doing so (Stahl et al., 2020). Consequently, the abuse of a public position for personal gain is seen as an important violation of the people's faith in the government.

Legitimacy

It is mandatory for civil employees and other public officials to carry out their responsibilities on behalf of the government or another analogous entity, such as Parliament (Stahl et al., 2020). Such powers should be used without fear or favour, and solely for the proper public purposes defined by Parliament or their employer, rather than for the advantage of the individual using them.

Fairness

It is required of employees in the public sector that they make judgments based only on the facts of the situation at hand, and that they do so in a way that is fair and respects the rights of those who are impacted (Stahl et al., 2020).

Responsiveness

As representatives of the public, those who work for or represent the government are held to a greater level of care, respect, and regard than those who do not work for or represent the government (Stahl et al., 2020). As a result, they are held to the same standards of service as all other government employees.

The concepts of efficacy and efficiency are both important.

It is the role of civil servants and government officials to extract the most possible value from public resources while minimising waste and overspending in the administration of public funds and programmes. People's procedural fairness protections are becoming increasingly widespread in the making of all public decisions that have a direct influence on them, and this trend is expected to continue (Stahl et al., 2020). This means that persons will have the right to be heard before a final decision is reached, as well as the right to know the facts of the case or charge against which they are defending themselves. Aside from that, in more serious situations, individuals may be entitled to legal representation. Additional rights include that comments made by residents are considered by the official who will be giving a decision, and they are entitled to an unbiased decision that does not take into consideration any considerations that are extraneous to the case.

Give a detailed description of Dispute Review Boards; Dispute Adjudication Boards; and Combined Dispute Boards.

The term "The Rules" refers to a detailed set of instructions for the creation and operation of a Dispute Board (DB) under the authority of the International Chamber of Commerce (ICC). Among other things, they are responsible for the appointment of members of the dispute board, as well as for determining what services they perform and how much money they get in return for those services and payments (Abdul-Malak and Senan, 2020). Generally speaking, a database administrator is responsible for three key tasks. When it comes to conflict resolution, both informal and formal, there is a strong focus on it in this atmosphere. It is stated in the Rules that, if the parties choose to settle their disagreements without the intervention of the DB, it may be possible for the DB to identify and encourage the parties to do so on their own initiative. The Department of Defense (DB) may seek informal aid if official assistance cannot be obtained or if the issue has gotten entrenched to the point that it cannot be ignored any longer (Capasso, 2018). Instead, if a disagreement cannot be resolved via a formal referral mechanism, the DB may rely on a recommendation or decision reached through that method. Complete any one of the activities outlined above and you may be able to lessen the risk and expense associated with contract termination.

A formal referral to a database is made possible by the Rules by making three distinct sorts of databases available to parties. Each type of database leads in a different type of decision being reached upon formal referral. The judgments of the Dispute Adjudication Boards (DABs) must be carried out as quickly as practicable once they have been reached (Klonick, 2019). A Dispute Review Board, on the other hand, may provide recommendations to the parties involved in the dispute that are not immediately binding on them. Nevertheless, if no one protests within 30 days, it will be automatically designated as such. Alternatively, the CDB, which serves as a link between the DRB and the DAB, is a viable option to consider (Mahnken, 2018). They may also issue judgments if a party requests it and no one else objects, or if the DB deems that it is necessary based on criteria stated in the Rules. If the suggestions and conclusions are explicitly stated as being final and binding, and if arguments on the merits are not permitted as a defence to noncompliance, then there is a contractual responsibility to follow the recommendations and findings. If you want to make use of the Rules, be sure to include a clause in your contract that specifically addresses this. Because of this, it has proposed three "Clauses," each of which permits one of three alternative kinds of DBs to be implemented. ICC has also proposed a model agreement for dispute board members, which has been approved by the International Court of Justice. This agreement addresses problems such as the duty of and remuneration for members of the dispute board, among other things (Wolfe, 2020). You have the option of either accepting or rejecting the decision of a dispute review board as final and binding on you, depending on your point of view. Unless and until a judgement is overturned or amended, it is mandatory to abide by the decision that has been made by the parties, a court, or an arbitral panel. Disagreements may be avoided in the first place via the use of Dispute Review Boards. This will enable a project to go on even if a judgement is reversed or altered in a future arbitration or lawsuit.

Arbitration awards and court judgements are not enforceable in the event of decisions issued by the Dispute Review Board, and they cannot be challenged as a result of these decisions. The agreement of both parties in writing is required before a judgement may be considered final and conclusive. Obtaining an order of enforcement of a Dispute Review Board ruling will require you to file a lawsuit against the other party for breach of contract (Chern, 2019). For example, Dispute Review Board decisions on cases that were not brought before it may be used as an illustration of how the defaulting party has limited opportunities to argue against enforceability in enforcement actions without providing evidence of abuse of authority by the Dispute Review Board, if no evidence of abuse of authority is provided. Another example would be if the parties only authorised it to issue a final judgement in a preliminary decision at the conclusion of the proceedings.

The DRB (Dispute Review Board) is best defined as a three-person panel designated by the contractual parties to serve as a "job-site" conflict adjudication mechanism in the construction industry. The DRB is engaged from the outset of a project, as opposed to other alternative dispute resolution systems. It also often visits the construction site to monitor progress and handle concerns. The inclusion of this clause in a contract may have an impact on the performance of the parties’ concerned (Amsler et al., 2020). It’s worth may be found in the 'now and now.' Alternative Conflict Resolution (ADR), as opposed to arbitration and litigation, is a kind of dispute resolution that encompasses any way of settling a disagreement that is neither arbitration nor litigation itself. In the same way that other ADR hearings are conducted, an impartial neutral is brought in to aid in the adjudication process. The adjudication process is guided by the principles of natural justice throughout its procedure. The impartiality of the tribunal is crucial in order to ensure that all parties have an equal chance to present their case to the court system. Short-term solutions such as adjudication are out of the question due to the lengthy nature of court processes. In other words, rather than emphasising on the "rigorous" quality of the adjudicatory process, consider it to be a demonstration of "judicial temperament in action." Litigation, arbitration, and mediation are all possibilities for dispute resolution that are not limited to adjudication (Eisenberg, 2018). Adjudication is not governed by the government and is not directed by legislation or common law, as opposed to the former. It takes time for the consequences of a decision to become apparent. Unlike arbitration, the adjudication procedure is not usually controlled by an Arbitration Act or an international agreement, which makes it unique. Arbitrators, as opposed to mediators, are restricted when it comes to making decisions by the contractual and legal frameworks in which they operate.

The success of a DRB is almost always impacted by the courts. The parties have a lengthy period of time to get used to their DRB, so dragging them through the courts for every little issue while the contract is still in place and the DRB is still in operation is clearly ineffective. It is predicted that the courts' rationale on expert judgement will be applied as a consequence of the new adjudication act in the United Kingdom, which will result in increased court involvement in adjudication and DRB procedures. So far, there have been some encouraging signals to consider (Wiegand et al., 2021). DRBs are effective in avoiding arbitration and litigation while also bringing the parties to a mutually agreeable arrangement, according to the evidence. Only one out of about 1000 disagreements has been unable to be resolved, indicating that the parties consider the 'judgments' of DRBs to be fair, or at the very least as fair as they would expect from an arbitration, an arbitrator, or a court. Having a DRB in place implies that all parties will be more driven to collaborate in order to resolve any difficulties that may develop in the future. The DRB is an useful tool for preventing disputes from arising. Achieving it helps to keep tensions at bay and increases collaboration between the parties, both of which are beneficial in facilitating peaceful settlements of disputes. There will be no 'duel of egos,' which might be detrimental. Claims and defences are more meticulously prepared and more trustworthy in order to avoid being seen as worthless or overstated in front of the DRB, as a result. A personal "reality check" is conducted after that. Therefore, there is less opportunity for lies and more room for truthful assertions as a consequence.

People who are involved are less likely to send each other harsh messages that might harm their relationships in the future. It's much to the DRB's dismay that they're aware of what's going on, if not consciously. As a result of the DRB's findings, the approaches of the various parties have been grounded in reality. Rather than being sad, the mood is encouraging. A powerful message to prospective bidders is sent to them by the inclusion of the DRB strategy in the bidding materials. This encourages a sense of openness and cooperation among those involved. A strong feeling of paternalism toward the projects on which one is working may be found in the engineering field (Barakat et al., 2018). When parties are compelled to come before the DRB during site inspections, they are encouraged to work together toward a shared objective and to find mutually acceptable resolutions. In the case of a disagreement, it is resolved as fast as possible. Engineers are no longer need to deal with large claims as a result of their overworked status. A regular occurrence is for some people to reject all assertions, sometimes under the impression that doing so would fix the situation.

As a consequence of the DRB's knowledge of the project and the velocity with which disagreements are brought before it for adjudication, the facts are better understood by those who are presenting and adjudicating the subject. A significant limitation has been placed on our capacity to recreate previous occurrences. When a construction project is completed, senior construction employees are often eager to move on to their next employment, which means that the arbitrator or judge may be deprived of the benefit of their first-hand knowledge of what occurred during the construction process. When these individuals are present, the situation becomes clear, and the parties are often satisfied that all pertinent information has been provided. A judgement that is unfavourable will be more likely to be accepted in good faith due of the concept of "swings and roundabouts," even if the judgement is unfavourable. Cash-flow problems may be resolved if the DRB approves the contractor's claim, resulting in early payments to the contractor. If all disagreements are resolved in a timely manner, the completion of the Contract Account and the release of retention money may be hastened significantly. It is feasible for each political party to concentrate on what they do best when they have a clear idea of where they stand. When working on international projects, the DRB often enlists the assistance of people from a range of different countries. Although it is not usual practise, translating anything, whether it is text or voice, into a foreign language may cause significant communication problems (Kisi et al., 2020). The consequences of such a situation are not difficult to envision. The DRB will take time, attention, and patience in order to guarantee that all parties, party representatives, and DRB members have a complete grasp of each stage of the processes before they can proceed. An unusually large number of first-time DRB participants will be involved in the formation of DRBs. The judicial system will be relied upon to provide assistance.