After having reviewed the ‘Principles
of Good practice’ please identify the two terms of the ‘Sample Standard
Contract’ which puts those principles into practice. Secondly, identify and
explain why you believe two terms of CCDC-2 should be added to the ‘Sample
Standard Contract’ to improve its risk management potential.
There are many
terms of the Sample Standard Contract which can be put into the ‘Principles of
Good Practice’ but the two terms of the
‘Sample Standard Contract’ which puts these ‘Principles of Good Practice’ into
practice are Professional Responsibility and Disputes
Resolution.
Professional
responsibility is one of the terms of the ‘Sample Standard Contract’ in this
term while performing the services they should provide the services according to
the customer’s instructions. They shall also provide their skills and standard
care for the services on the project which are given to them by the client. The
practices and procedures which are normally provided in that service shall be
accepted by the consultant and should work accordingly to the customer’s instructions.
On
the other hand, in Disputes Resolution if there is any dispute or concern between
the Consultant and the client or it is related and connected with that agreement
which has been made with the assistance of the mediator that dispute or concern
shall be resolved between them. If a request has been made by the of them
Client or Consultant in writing while a dispute is arising between them so that
dispute shall be resolved them.
These two terms Professional Responsibility
and Disputes Resolution which have been discussed put into practice the ‘Principles
of Good Practice’ which are Act Honourably and with integrity, Provide
competent legal services, Maintain loyalty to clients and avoid conflicts, Serve
clients courteously and promptly, and also many other principles are been
practice through this term.
The
two terms of CCDC-2 which should be added to the ‘Sample Standard Contract ‘to improve
its risk management potential are Payment terms and the other is Allowances.
Payment terms are the term of CCDC-2 which includes
numerous payment terms. In this term, the contractor is required to submit their
application to the owner and consultant at the same time and is not required to
advise the owner of the receipt of a payment application. The application for payment
by Contractors must comply with payment legislation. The timeline for the
payment to the contractor to follow the receipt of the application is 28 days from
receipt of the proper invoice. In 10 days the consultant will issue a certificate
of payment to the owner. The owner must issue the notice of non-payment to the
constructor within 14 days of receipt of the application and this 14 days' notice will be accordingly to the Construction’s Act prompt payment
requirements. The owner on his behalf can give directions to the consultant to
issue a notice of non-payment to the contractor.
The other term is Allowances in this term Cash
allowance and Contingency Allowance has been discussed. In the contract of cash allowance if there is a shortfall in the
allowance so reallocation is allowed from one allowance to another to
cover that shortfall. In this case, no additional amount will be added to
the Contract Price but a reallocation of the allowance can be done by the
Consultant to cover that shortfall.
Although, these two terms of
CCDC-2 shall be added in the ‘Sample Standard Contract ‘ to improve the risk
management potential because in Payment terms all the various methods of payment
terms have been provided, and also many other things like the application of
payment and notice of non-payment. If there is a shortfall in the contract of
Cash allowance so reallocation is allowed to cover that shortfall. So these are
terms of CCDC-2 which are necessary to
improve the risk management potential.

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