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WAINAGE CONTRACT RISK () Eskom Eskom awards a 'conventional' electrification contract (with the NEC3 ECC conditions of contract) to a contractor, with Eskom providing 'free

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WAINAGE CONTRACT RISK () Eskom Eskom awards a 'conventional' electrification contract (with the NEC3 ECC conditions of contract) to a contractor, with Eskom providing 'free issue' material (e.g. pole mounted transformers, insulators, conductor etc.). The contractor is later awarded another 'turnkey' electrification contract which includes its supply of all material. The location and area of the 2 sites places them within 100 kilometers of each other. A year after the award of the first contract, there are significant delays, resulting in these 2 projects proceeding into the construction phase concurrently. What are the related risks? What is required to monitor and manage thescisks? Hint 1: What are the contractor's greatest challenges likely to be? Hint 2: If the contractor is unable to manage these challenges, what is likely to be the greatest temptation? Hint 3: What site and administrative checks would prevent the contractor giving into these temptations? Hint 4: Should, and how should, contractual management be applied? Hint 5: What benefit did the contracting strategy for the second contract try to achieve

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