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Write a report on tender requirements and contract implementation process.

Tender Requirements

The procurement regulations or the regulations upon procurement refers to the acquirement of products, services and the building up on behalf of the statutory authorities which may include an agency of the government. This aims to cease the deception, wastage and illegal processes of corruption. The laws of the various countries issue government tenders to a reasonable limit. With 10 percent to 20 percent of the gross domestic product, this acquisition of the government results a hefty portion of the economy globally. Thus, Procurement regulations means a bundle of approaches, strategies and recommendations which enables the ability of an organization of the government to identify, recognize, procure and buy products and the services through and any organization or association externally (Govindan, Diabat & Popiuc, 2012). This is more often done through a challenging auction or by the process of tendering. The regulations of the acquisitions are essential to govern the party which is tendering to procure the various services, tasks or the products at the best possible rates. This is done after a comparison of the ingredients of the bulk quantities, whether they are of superior or inferior qualities, the locality and of time (Hanson & Holmgren, 2011). On explaining their process of tendering, the public agencies and the organizations often aspire to project the open just and open competition for the purpose of the smooth functioning of the business. This is done with purpose of taking the least possible risks as open to fraud and deceit. There are two parties in this case namely, the first and the second party. The first party wanted services from the second for the delivery of lampposts in  Buriami, Oman.

While understanding the lowest value of a contract, the value can be understood as to whether the tender is put at the local, public or at the global level. One such example would be the contracting of an international, private or a public lender refers to the business over AED 360000. The company gets involved in both closed public and private tenders. While considering the situations of a public tender, the company must assure that the three most important principles are followed. These principles are- Firstly, equality is absolutely important in the process of tendering. Secondly, the tender must be proclaimed in public and possess publicity. Thirdly, there must be a free flowing rivalry  for the tender. On the contrary, the company might find it essential to restore the public tenders with a closed tender by referring to the recommendations by the Tender and Auctions Committee (Herbert Smith Freehills, 2011).

Under the given contract of lampposts, the total sum to be paid for 11 months duration is 700,000 AED. This is inclusive of the printing and the installation charges. This is dependant upon AED 700,000 of the lamppost rentals and AED 700,000. The periodic maintenance is inclusive.

Once the company gets the tenders, it puts forth an opening offer for the tasks or the services which is to be posted during the time when the supplier or the contractor provides with a counter offer. Both the parties then intentionally put the offers at a stagnant position unless they reach friendly outcome to complete the tasks for the parties. But, before the company reaches to an agreement the enterprising and practical calculation of the contractor as well as the supplier must be done. If the pecuniary records are examined it is to assure that a healthy relationship with regard to money is maintained by the executive. The company also pleads to the contractor to provide them all other proof with regard to same tasks and that the contractor has accomplished such tasks from before. Once the committee at the company’s tender is happy with the process of calculation it pleads to the legal committee to prepare the agreement which talks about the terms of the contract and which can become binding upon the parties.

Contract Implementation Process

On reaching an agreement with company, by the contractor or the supplier the management of the company selects the contract administrators whose primary responsibility is to assure that the rules of the contract have been enforced according to the letter. Specially, the contract administrators assure that time limit of the contract that is whether it has been accomplished on time and that the executions are at par with the rules and regulations and according to the legal conditions prevailing according to the law of the land (Knap, Crystal & Prince, 2016). It is the duty of the contract administrators also assure that the company submits towards the finishing of the bargain as stated in the agreements. Once the payment is made, the department of finance can pay the sum to the contractor at par with the progression of the tasks by issuing the certificates of payment upon the pecuniary and the practical view to ensure the partnership with the regulations and the rules of the contract. A total of 90 percent of the task value must be made by the contactor. A committee on project acceptance must take a provisional acceptance of the task done by a contractor whereby the committee makes a report of acceptance upon the fulfillment of the provisions acceptance upon ascertaining to all the conditions, rules and regulations stated in the contract (Forbes, 2016).

Having a look at the analysis of the contract, it can be divided into the following headings for a better understanding:

The contract is between the first party and the second party whereby the second party wanted services from the first. It was agreed by both the parties whereby the first party would rent advertising boards of lampposts of size 300cm x 125cm. The two major ingredients of a tender of this temperament is an offer and acceptance. The general principles of contract has the prime rule that in order for a contract to be valid, there must an offer and an acceptance between the contracting parties. Furthermore it should be enforceable by law. An offer in furtherance of a contract incorporates within itself the summoning of the tendering party to calculate the words of the contract. The outcome for this would be either an acceptance or a rejection (Purchasers, Tenders, Auctions & Warehouse Manual, 2014). An offer to contract is often proceeded with the aim to make so that it can be accepted or rejected and a legal relationship can be brought in. the conditions of the offer should not possess of rules which are impossible to be made true. Impossible conditions would prevent the contract from being performed and thus it would not lead to a valid contract. In order to make it a complete contract all the extra and necessary data is essential to help and define the offer.

On the contrary, acceptance puts emphasis upon the agreement without conditions to an offer. Hence, acceptance to an offer that is, an affirmation to the offer gives birth to a contract between the parties. If a counter offer arises, such offer must be affirmed by other party before the words of the contract become binding upon the parties. Since both the first and the second party has agreed to the terms of the contract of lamppost advertising it is a valid contract.

Analysis of Contract

The subject of the contract means and includes the words used in the offer which would read and understood by the opposite party to give an acceptance. Only this would make the contract valid and binding. These terms of contract are the subject matter of the contract. It incorporates within itself, the bargains and all other opinions (Stone, 2005). Indication of words not make it important for a document to be termed as an offer. The subject of the contract between first and the second party is about acquiring lampposts on the basis of rent. The contract contained certain terms as to the costs, the duration, the extra charges with regard to other technicalities which were agreed by both. In case of any alterations in the contract by either parties, the other party’s prior consent is essential. Otherwise there would a breach in the contract and the aggrieved party would be liable to compensation. The first party would be responsible to take all the permissions with regard to the Buriami municipality and according to the rules of Emirates of Abu Dhabi along with the federal statutes of UAE under the jurisdiction of Al Ain City.

Warranties are called the assurance which are inside the terms of a contract. However they are not as important as the conditions imposed upon a contract. If the warranty fails, it is usually an indication that the party who had warranted has also failed. In such a situation, the parties are required to pay compensation to the aggrieved party (Callahan, 2009). This amounts a breach of contract. In this case, contract between the first and the second party regarding lampposts contract has many such conditions and warranties. The contract needs the second party to ensure that services are needed to be enforced as stated under the terms of this contract and they have been fulfilled at par with all the rules and regulations stated in the contract from the first party. This also states that there were no demerits cropping up while in the enforcement of the services. The contract then states that there should be an absence in the services fulfilled or whenever there is a breach of any of the responsibilities under the terms of contract under interrogation that would be held essential to the answers of the absentees recorded. The basic regulations of the contract between the first party and second party is for a period of 17 months plus 2 months. The article 3 includes 11 additional times and 5 times re installation of previous campaign. The amount would be paid in 4 installments in arrears must be paid off at the end of every third month as per the schedule of annex 1.

The termination of a contact refers to the determination of a contract between the parties either upon a breach of the terms of the contract or upon the contract being fulfilled or coming to an end. The terms of a contract are always known to the parties and in case the parties desert the conditions of the contract, it remains open for the suffering party to either cancel the contract or claim the other party for compensation (Adriaanse, 2016). In case of the contract between the first and the second party, either party can claim for the termination of the contract, a notice in writing should be given to other party and the other party should respond between 60 days. If the natural forces rain, wind or other issues like that of electricity is concerned making the performance impossible then the contract stands terminated.

The duration, performance and the conclusion of the contract between the first and the second party are influenced by the laws prevalent in UAE and Abu Dhabi. All the orders, decrees and judgments passed for the purposes of contract under these shall be in the courts of UAE and Abu Dhabi. Article 141 of the UAE civil code applies to the laws regarding the current scenario stating that the parties requires justice to a contract and it should be under agreement regarding the basic ingredients of the application. Article 185 of the UAE civil code is also related to this agreement since it deals with the issue of misrepresentation. When one party cheats on the other party through fraudulent mediums or other convincing ways to get the consent of the other party into getting something to do it is a voidable contract (Arrowsmith et ol., 2011).

In case of any dispute which may awaken during the performance of the terms of the contract between the said parties. Under this, the terms of the contract clearly and specifically state the ways of setting a conflict and solving them in the easiest way without hassle. The process of settlement is expected to be cordial amongst the parties to contract. If these conditions are not followed then the matter would be referred to in the courts of Abu Dhabi.

The person making the contract is inclined towards the commitment of their equipments and different properties for the time period of the contract. Apart from this, the contract also has the responsibility to assure the liability of the employer is fully completed accompanied with all other advantages  relating to from any epidemic or accident or death of either parties which is kept by the employees during the time of their employment to do the tasks under the contract. It is anticipated that the parties would follow the terms of the contract (Auctions and Warehouse Manual, 2008). The HSE needs as said in the contract must be followed along with the best industry practices as stated in the contract terms. This incorporates the measures of  provision of the workers with enclosed clothing and safety devices that are followed with the various disciplines and rules of the HSE literature.

This contract has responsibility in preserving the interests of the organization in many ways. Firstly it starts with the commitment on behalf of the contractor to preserve every data and information with utmost secrecy for the welfare of the company as they might stammer upon the enforcement of the duties stipulated by the contract. It must be proved that the contractor has been guilty of the violation of patent or any copyright in relation to the services granted as stated in the contact they shall have compensated the company (Bower, 2003). Moreover, the contact does not permit the contractor to be the owner of all programs, documents and other important data and information as prepared specifically for this purpose. The enforcement of the services would be compensated by damages. The contract is responsible for all the risks, advantages and disadvantages in relation to the contract. All the points which create an obstruction to make strikes upon the fulfillment of the tasks within the correct time. The company should get away with unwanted risks leaving it accumulated to the important tasks. Another way by which the contract preserves the interests, rights and duties of the organization is by the power of transmission of contract to a third party if the present has completed the task in below level standard. This is essential to assure the contractor does not complete his task with the use poor quality articles. Only those of standard or of high quality work is wanted to be made fulfilled with the payment of the additional prices. It is the duty of the contractor to meet the needs of the company and all the extra prices that must have incurred in such process (Aureli, Ciambotti & Del Baldo, 2011).

After a close perusal of the above information, a brief overview can be drawn. He law relating to contracts is civil in nature. For the contract to be a binding and a valid one, all the essential tenets for the completion of a contract needs to fulfilled. There should be offer from one party and acceptance by the other. The terms of the contract must be enforceable by law. The subject mater of the terms of the contract should not be vague and unambiguous. The contractor of the contract possesses certain responsibilities are fulfilled as a means of warranties. The conditions imposed upon should be followed by the parties to prevent the breach of contract. A breach can result in the payment compensation to the suffered party or by cancellation of the contract before the complete finalization. After all the terms and conditions are completed, the contact should come to an end. The termination has however has a procedure of rules, in case it is not terminated on the regular scenario. In case of the conflicts that may arise in the process of contracting, the current laws of the land is required to be followed. The laws in Abu Dhabi would be followed here in case of conflicts. However these conflicts can be resolved in the most cordial way as stated in the rules. The mechanism stated above should be competent to solve all the problems related to the dispute correction meaning. The contractor is then exposed to further responsibilities which he is required to follow to avoid the matters from getting controversial in courts. The interests of the organization are protected and preserved I the desired manner. The contract analysis upon the regulations of public procurement thus aims at the attainment of the best targets within the speculated time by the public agencies. The contract here dealt with the first and the second party over the lamppost contract. The above rules must be ensured for the smooth functioning of the business and the contract rules.


(As Amended) On Purchases, Tenders, Auctions, and Warehouses 2014.  Retrieved


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Arrowsmith, S., Treumer, S., Fejø, J., & Jiang, L. (2011). Public procurement regulation: an introduction.

Auctions, and Warehouses Manual. Issued Pursuant to Law Number (6) Year 2008

Aureli, S., Ciambotti, M., & Del Baldo, M. (2011). Inter-organizational networks as a strategic response to current economic challenges. The Italian experience of the “network contract”: Analysis of networks formation, goals and governance. RENT.

Bower, D (2003). Management of Procurement. London: Thomas Telford.

 Callahan, M.T. (2009). Termination of Construction and Design Contracts. Alphen aan den Rijn,

Forbes 2016. The World's 25 Biggest Oil Companies. Retrieved from


Govindan, K., Diabat, A., & Popiuc, M. N. (2012). Contract analysis: A performance measures and profit evaluation within two-echelon supply chains. Computers & Industrial Engineering, 63(1), 58-74.

Hansson, L., & Holmgren, J. (2011). Bypassing public procurement regulation: A study of rationality in local decisionmaking. Regulation & Governance, 5(3), 368-385.

Herbert Smith Freehills LLP (2011). UAE contract law-5 legal points to remember.

Knapp, C. L., Crystal, N. M., & Prince, H. G. (2016). Problems in Contract Law: cases and materials. Wolters Kluwer Law & Business.


Netherlands: Aspen Publishers.

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Stone, R. (2005). The Modern Law of Contract. New York: Psychology Press.

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