Question: Write 4300 words Paper for CIPS in Module: Contracts Terms and Conditions. Assess the contractual terms and their impact on the distribution of power and risk between the Seller and Buyers. Task : Select a contract that is used by your organization. Assess the contractual terms and their impact on the distribution of power and risk between the supplier and your organization.
The selected agreement is (Sale & Purchase Agreement (SPA) for Jack-up Rigs) between ADNOC Drilling as (Buyer) and Shelf Drilling as (Seller).
1. 1-Executive Summary
• What are you talking about
• How you did your research
• What are the findings
• What are the recommendations
2. 2-Introduction Write in general about the company (ADNOC) and ADNOC Drilling in specific
Introduce the product description that it's going to used in the assignment.
• Introduce the contract (provide context)
• Contracts Definition
• Essentials of valid contract
3. 3- Supplier Relationship Spectrum & A. Talk about the Seller (Shelf Drilling)
B. Link and explain
a. Kraljic (CIPS model) (How is the buyer "ADNOC" position the seller "SD")
b. Supplier Preferencing (How the Seller position the buyer)
c. Use Supplier Relationship Spectrum (use CIPS)
C. Who has power between us + them?
D. Types of Power: Financial - Reputation - Size - Authority
4. 4-Terms & Conditions I have attached the T&Cs for the agreement, Please review them and select at 6 clauses. Where you need to
A. Define Terms & Condition
• Express & Implied Terms
• Contract forms
• List the terms of the contact, quote them in the paper and assess the risk
B. How did the explained Power & Risk translated into contractual terms? (Use 6 different clauses (contractual terms) for your explanation) - Please quote each clause, then elaborate under each one.
• There is power because it's written agreement: (more powerful)
• Better control.
• You can highlight things needs to be written down:
• Duress: sole source situation? He knows he is the only one.
• Implied terms: whose country jurisdiction is contract under?
• Express terms: did we give power any power to the Seller?
(Explain the relation + why we gave him power)
1. 5- Power & Risk identification • Identify type/sources of Power and Risk (general explanation)
• Identify type/sources of Power and Risk in the relation to this contract.
• How do Power + Risk link up to the relationship
• Eg. In a adversarial relationship you might want to give a bigger share of risk to supplier and keep the bigger share of power to yourself.
2. 6-Risk & Challenges • List at least 8 Risks associated with this agreement
• Build risk assessment matrix and mitigation for each risk (use Tables if possible)
3. 7- Conclusion • What was identified and found
4. 8-Recommendation • What do we suggest
• What can be improved
• What would you do differently
Assignment Outline is attached with the T&Cs of the contract.
Attachment:- Outline - Module.rar