Essay Health Economics - 2827 Words

Cost-benefit, cost-effectiveness and cost-utility analyses are forms of economic evaluation which are useful in health economics for comparing costs and allocating resources. Health economics is widely relevant to governments and the health sector in implementation of new policy, as it concerns the allocation of resources in the context of a limited budget, or scarcity. Economic evaluation is a potential tool for setting priorities in health, though it is only one of many potential criteria, including overall budget and public attitudes and wants. Economic evaluation is already in use in some settings, such as in pharmaceutical company proposals for government subsidisation, but there is room for expansion across the field of†¦show more content†¦Changing factors such as aging populations and new technologies becoming available are increasing expectations from people throughout the world, and decision makers must make rational choices to maximise benefits to population healt h whilst working with limited resources. Yothasamut et al (2009) summarise this by observing that health care resources in every setting are always constrained, while unlimited demand is observed. The best choices in the context of economics are the ones which maximise utility (individual satisfaction through consumption of goods) and welfare, the sum utility experienced by all individuals in society. Decision makers often have to seek satisfactory rather than optimal solutions, also known as working with bounded rationality (Simon 1957 in Williams et al 2008), as it is important to pursue both efficiency and equity in the funding of health care. Therefore, it may be unsuitable to fund the most cost effective option if it sacrifices the equal distribution of benefits. Research in health economics can take a normative or positive approach and this reflects the balance needed between cost control and equity when making economic decisions. Positive economic research and analysis is con cerned with how things are and seeks to explain economic phenomena, whilst normative economic research and analysis is concerned with how things ought to be and relies on valueShow MoreRelatedEconomics and Health Care1520 Words   |  7 Pagesturn leads to market failure. * Third-party payers is another reason because inefficiencies arise as a result of consumers not spending their own money. The majority of the expenses are paid by third parties, primarily health insurance companies and the government since health costs are usually too expensive for the middle to lower class who are usually more likely to become ill. 1B. In the real world, a perfectly competitive market rarely exists. One or more assumptions are violated in mostRead MoreHealth Economics1683 Words   |  7 PagesHSA 500 Health Services Organization Janeen Whiteside-Harris Professor: Dr. Maryjane Granoff October 24, 2012 United States (U.S.) Health Care System (HCS) Requirements are to write a three to four page paper covering the following: 1. Identify and evaluate at least three forces that have affected the development of the health care system in the U.S. 2. Speculate whether or not these forces will continue to affect the health care system in the U.S. over the next decadeRead MoreHealth Economics1189 Words   |  5 PagesHISTORY OF HEALTH INSURNCE I stopped for a moment to imagine an average Americana’s world without a health insurance, what will become of such individual when the need for healthcare beckons? How will such individual offset the outrageous bill of healthcare? Health insurance is used in America to describe any program that helps pay for medical bills through the following: privately purchased and social insurance or a social welfare program usually powered by the government. Simply put, health insuranceRead MoreStatement Of Scholarship In Health Economics823 Words   |  4 Pagesto express my interest in the PhD scholarship in Health Economics at Monash University which was advertised in seek career website on 14th September 2017. I am a graduate from Curtin University who completed Master of Health Administration. While I was doing my postgraduate studies, I decided to do my dissertation in the field of Economics, focusing on Health Economics. The topic of my postgraduate dissertation was â€Å"Trends in income-related health inequalities in Australia†. The source of the dataRead MoreEssay about Health Economics741 Words   |  3 PagesFebruary 10, 2015 This memorandum will use Grossman’s model of production of health to evaluate how New York City’s new sick leave law will affect emergency room use. Grossman’s model states that a person utility is based on health (H) and other non-health related goods (Z) that the person consumes. The production possibility frontier for Grossman model shows the tradeoff between home good production (Z) and health (H). Unlike usual production possibility frontiers, an individual needs an optimalRead MoreEconomics : The Financing Of Health Care1379 Words   |  6 Pages Thomas Gordon Healthcare Economic History ECONOMICS: THE FINANCING OF HEALTH CARE March 2, 2016 Lena Watson Health Care History The United States HealthCare System is pushing and getting ready to have a huge reformation. It is evolving on a major substantial evolution from its organization, management structure, and payment structure. The economic component of healthcare is equally important to better understanding the order to structure stature and is very successful. InRead MoreImplications Of Health Economics Concepts For Healthcare1712 Words   |  7 PagesImplications of Health Economics Concepts for Healthcare Chandra Chisholm Strayer University HAS 510 Dr. David Tataw May 3, 2015 Value of Healthcare Professionals Healthcare is getting gradually complex around the world. The need for technological development, economic support, demographics changes and the study of diseases are shifting at a fast speed. There had been numerous labors in describing collective capabilities and values within the healthcare organizations. It is necessaryRead MoreSocio Economic Class And Health Inequality1174 Words   |  5 PagesSocio-economic class has been linked to health inequality ever since the mid-19 century, when reported the living condition of the poor. Chadwick, E.1842 reported that the average life expectancy in Bethnal Green was 45 for professional but only 16 for labourers. Concern about inequality within the population in the early 20th century was offered as one major justification for the setting up of National Health Service (NHS) based on the recommendation of the Beverage report (1942). The health inequalityRead MoreUnderstanding The Value Of Health Economics811 Words   |  4 PagesUnderstan ding the value of health economics is very important during this rapidly changing environment. Health economics is the study of how transactions or connections between health and the resources needed are made and of the bottom line results (Getzen, 2013). Resources include money but also people, materials and time that could have been used in other ways. Our healthcare needs may be unlimited but the resources we have to satisfy them are not. We must make careful choices about which needsRead MoreHealth Economics And Policy Questions2412 Words   |  10 Pages Health Economics and Policy Coursework Question 2 SN: 13026885 a) w=  £62,500 U= √w 50% chance of medical problem Costs of  £4,900 We can derive this individual’s expected wealth if we multiply the probability of each outcome with the associated costs. E(w) = 0.5 *  £62,500 + 0.5 * ( £62,500 -  £4,900) E(w) = 0.5 *  £62,500 + 0.5 *  £57,600 E(w) =  £60,050 To find out what level of utility will this individual’s expected wealth yield, we simply have to put the value of the E(w) in the utility

Scientific Thinking And Research Methods Essay - 2031 Words

Scientific Thinking and Research Methods Alyssa Klingbyle, McKenna Krause, Taya Agius, Matthew Barnes University of Windsor 02-46-115 Article One: Jeff Galak, Tom Meyvis. (2011). The Pain Was Greater If It Will Happen Again: The Effect of Anticipated Continuation on Retrospective Discomfort. Journal of Experimental Psychology: General. 2011, Vol. 140, No. 1, 63–75 DOI: 10.1037/a0021447 Purpose of Study: The purpose of this study was to test whether people rated a tedious task with a higher aversive, boredom, annoyance and irritation level if they knew they had to complete the task again rather than if they did not know they had to complete it again. Theoretical Basis of Study: Psychological mechanisms prevent people from reliving aversive experiences to their truest extremes, creating fewer aversive expectations. This will entice people to partake in the experience again, but this also assumes that people’s memory of the experience are not affected by their contemplation of repeating the experience. Research has shown that people are likely to brace themselves for the worst when going into negative situations, and react more negatively when these situations are unexpected. For example, students are typically optimistic about their mark just after finishing an exam; but as a few days or weeks go by, they are to brace themselves for the worst, and believe they may have done worse than they did. This experiment tests how people willShow MoreRelatedCritical Thinking And Scientific Method847 Words   |  4 Pagesapproach to their experiments and research. The main two that they tend to use is critical thinking and scientific method. Critical thinking is defined as the process of thinking deeply and actively asking questions and evaluating evidence (Facione, 2011). Analytically thinking is something that many people use majority of the time without ever recognizing or realizing what it is that they are doing. Scientific method on the other hand, is when all the research and evidence is empirical, or basedRead MoreHow Psychology Is The Human Mind And Behavior1513 Words   |  7 Pagesscience which helps to understand the human mind and behaviour. To understand properly, one needs to trust on scientific methods that would help in recognizing the aspects related to the behaviour and psychological processes going in the mind of an individual. Instead of just trusting on personal observations about the experiences that an individual faces, the process of scientific research is much more systematic as well as authentic while trying to assess the details about the field of psychologyRead MoreInquiry Based Lea rning1454 Words   |  6 Pagestheorists such as Dewey, Bruner, Postman, and Weingarten (Justice, Rice, Roy, Hudspith, Jenkins, 2009). Dewey believed that students need to develop critical thinking skills rather than the memorization of facts to be successful individuals (Justice et. al. 2009). Critical thinking is an important component in many fields. Dewey also felt that thinking was a reflective process and that students made observations to clarify what may be happening to gain an understanding (Runnel, Pedaste, Leijen, 2013)Read MoreHistory Of Science And Conceptual Understanding919 Words   |  4 Pagesexpressed about the history of science that the history of science is composed of hypocrisy and skepticism â€Å" science scoundrels†, therefore, it is condemned by the scientific community. It also indicates that although there were early scientists ‘naive thinking and ideas, such early thinking contribute to direct our present thinking and make studentsâ₠¬â„¢ conceptual changes. It takes long time for students to make change and build their personal knowledge to become accepted. Moreover, it mentions thatRead MorePseudoscience Is A Form Of Bad Reasoning1442 Words   |  6 PagesPseudoscience is a form of bad reasoning because it lacks empirical evidence. It disregards the scientific method and is usually unreliable. Some examples of pseudoscience are astrology, hypnosis, and polygraph tests. Although science is a factor in each of these examples, they are not justifiable because the results cannot be replicated. By learning more about pseudoscience, we can recognize illogical thinking and prevent it. Pseudoscience not only causes irrational reasoning, its effects can lead toRead MoreSociology as a Science Essay1149 Words   |  5 Pagesway of thinking marked by application of reason, experience and experiment to the natural and social world. Sociologists approached the study of society and change by using scientific means as they were inspired by the recognition of the value of scientific principles and procedures. Science is a systematic, rigorous, controlled discipline aimed at understanding, gathering knowledge about and predicting occurrences within the natural world. If a research method has these Read MoreIndividuals and Their Discoveries Are Not Enough to Bring Medical Progress. Explain How Far This Statement Applies to Jenner and His Work721 Words   |  3 PagesJenner’s discovery of the link between cowpox and smallpox was significant to the development of a vaccine for smallpox. However, it can be argued that Jenner and his discovery were not enough on their own to bring medical progress. The factors Scientific thinking, Government Communication and Changing attitudes played a major and important role to bring medical progress. One reason as to why the statement applies to Jenner and his work is because the Government worked in Jenners favour to bring medicalRead MoreThe Definition Of Rational Thought1198 Words   |  5 PagesThere are several different types of ways of thinking, which undergoes diverse processes. One of the approaches is rational thought, which is one of the key factors to science (Gauch, 2003). The science is a particular area proving theories by reasoning (Giere, Bickle, and Mauldin, 2006). Whilst there have been several examinations related to means people think rationally, it seems to be important to understand what rational thought is; furthermore, the approach can be an influential factor in academicRead MoreFundamentals of Research Methodology1135 Words   |  5 PagesFundamentals of Research Methodology Monique Vann PSYCH 540 March 24, 2013 Jeanne Henry, Ph.D. Fundamentals of Research Methodology This paper will explore the fundamentals of research methodology in the Psychology field and discuss the importance of psychology. The answers to these questions are the basis for the theories that led to research. Research is the groundwork performed by Psychologists in order to answer questions about behavior and the mind. The outcome of the research will offerRead MoreA Brief Biography of Sir Francis Bacon Essay1409 Words   |  6 Pagesscience, and was determined to change the face of philosophy. Bacon applied his knowledge and focus to methods of perceptible truth, and emphasized communication and experimentation. His ideals and values sparked the industrial age, and his theories had a major influence on 17th-century European science. Francis Bacon’s opinion on the correlation between religion and science, his way of thinking towards reason and experience, and his views and impacts on the importance of education were his main contributions

Atlantic Revolution Free Essays

Nationalism and revolution often go hand in hand. Yet, while nationalism might lead to revolution, and perhaps national independence, it is much broader than revolution, and one should not be confused with the other. â€Å"All nationalists believe that nations can be identified by certain characteristics that all its citizens hold in common. We will write a custom essay sample on Atlantic Revolution or any similar topic only for you Order Now These characteristics include the linguistic, ethnic, religious, or historical traditions that make a nation distinctive. All nationalists†¦are linked across time by [a common] language, literary tradition, and history† (Gelvin 2011). Atlantic Revolution What the American Revolution had in common with the Atlantic Revolution is that it wasn’t one single event or conflict that lead to uprisings everywhere. They were interconnected sharing common political vocabulary and strong democratic character† Where the American Revolution sought to create a new republic the Atlantic republics wished to recreate a new society from scratch. The American Revolution started a Trans-Atlantic Age revolution. Discovery of the New World It all began with the discovery of the New World by Columbus is 1492, which happened on behalf of Castile which was the Spanish crown. Prior to this discovery Europe had switched from the Feudalist system to the Capitalist system. Nationalism in Europe fueled the desire to control colonies in Asia and Africa. Finding a new route to the orient was the goal, when the Americas were discovered. The â€Å"Atlantic revolution,† was the redirection of trade routes brought about by the great geographic discoveries. The Atlantic revolution, however, did not so much replace the old lines of medieval commerce as build upon them† (Britannica). The European merchant capitalism formed a framework that became a joint venture for Europe, Americas and Africa. One that was founded upon coerced labor in which all contributed to the vast complicated network known as the Atlantic economy. â€Å"While not equal in power, each was critical in the contribution to the construction of the Atlantic world†(Benjamin 2011). Atlantic World By 1607 the first English settlement in America was set in Jamestown Virginia. Only Seven out of Ten settlers remained in the New World, due to starvation, harsh living conditions and wars with the Natives. The natives who had traded food for death were fighting two enemies disease and setters. Diseases such as malaria, small pox, scarlet fever and influenza wiped the Natives out. Creating a shortage of labor in the creation of the New World. When Columbus first arrived, he brought Horses. These horses were traded to Native Americans which helped change the face of hunting forever. This allowed the Natives to move from hunting parties requiring several men that lasted days to one hunter on horseback. The New World gave the Old World tobacco, cocoa, beans, tomatoes, corn and potatoes. Both Corn and potatoes became the food of the poor after Europe came out of the epidemic known as Black Death. Although no cure for the countless diseases on both sides of the New and Old Worlds. The retreat of the plague left Europeans with only war, hunger and a raft of other infections to deal with. † Economy The Columbian Exchange brought the Europeans wealth and power. The combined animal and plant products from the Indies exceeded gold and silver in value. While it brought the native Americas an unequal exchange of food for diseases that caused entire Indian cultures to vanish. The Columbian Exchange brought the Africans to other countries; discovered by the Portuguese searching for gold, later kidnapped later to be bartered and sold into slavery to satisfy Europeans unquenchable taste for goods. While the Columbian exchange had life changing positive and disastrous ending negative effects on four continents and three branches of humanity. Ecology became destiny determining who would thrive and who would die. Tobacco John Rolfe was an entrepreneur, who dared to sail to the Americas. He landed in Chesapeake Bay, with a dream and some tobacco seeds. He planted them and a crop grew that was worth One Million United States currency of today. August 1619 the first permanent African involuntary labors arrived to care for the tobacco crops. Slavery did not exist at this point in time, Later another One Thousand settlers arrived with Twenty African indentured servants. â€Å"The black indentured servant, with his hope of freedom, was increasingly being replaced by the black slave. â€Å" In 1705, the Virginia General Assembly removed any lingering uncertainty about this terrible transformation; it made a declaration that would seal the fate of African Americans for generations to come†¦ â€Å"All servants imported and brought into the Country†¦ who were not Christians in their native Country†¦ hall be accounted and be slaves. All Negro, mulatto and Indian slaves within this dominion†¦ shall be held to be real estate. If any slave resist his master†¦ correcting such slave, and shall happen to be killed in such correction†¦ the master shall be free of all punishment†¦ as if such accident never happened. † (PBS) â€Å"The Body of Liberties, recognized the enslavement of Africans as not only legal but also moral in 1641† (Code Noir 2008). Slave Revolution When the first record of blacks arrived in US history it was in Virginia in 1619. The Colonists used words like, black skin and connoted words like â€Å"soiled, dirty†¦ horrible, wicked to describe the blacks, while white skin connoted â€Å"purity, beauty, and goodness. â€Å"About 1860 racism reared its ugly head when white settlers started referring to themselves as white. As time progressed, harsh, brutal treatment of the Negro, the African American, the Black, was based on the dehumanizing of this person, and asserting white supremacy. † (Sanders) Unable to swallow the idea that a black man could be their equal, the American White Anglo-Saxon took steps to make sure that equality just didn’t happen. As early as 1740 laws were passed that punished, by death, any act of rebellion Negro slaves committed or any act against a white person that resulted in grievous wounds, bruises, or maiming, without benefit of trial. French Colony of Saint Domingue The French had the slave system down to a science knowing that the average rate per slave was three years. This inevitable death sentence, sparked a revolution within the slaves themselves. The French Revolution sparked, the most famous revolution which began in the French colony of Saint Domingue later known as the country of Haiti. The Haitian revolution lasted for twelve years, under the leadership of Toussaint L’Ouverture. The revolution took a turn when the slaves acquired guns from the neighboring Spanish and used them to fight off the British, French, and Spanish defeating 60,000 soldiers. The revolt caused Britain and France to abandon slave trade, making One Million black slaves French citizens in 1794. The French-Haitian Revolution What Nationalism and Revolution tell us about the role of slavery in the Atlantic World was what was done to justify slavery. In 1831 a Slave revolt lead by Nat Turner was used as reason to continue slavery. The whites were far outnumbered which was why The Haitian Revolution was kept quiet. For this reason, white Frenchmen were not permitted in Cuba for fear that they tell the story of the revolt in Haiti. One Million black slaves became French citizens in 1794 and when Napoleon tried to reinstitute slavery in 1802 things did not go well. Ultimately, Catholicism was used to try to de- Africanize the slaves, the colony wished to assimilate them culturally in order to continue their subjugation. American Revolution The American Revolution affected slavery by creating new ways for the slaves to be free. People started questioning slavery on all sides. The Americans won their independence from the British but the most vital area that America needed to address was the one of racial segregation. The primary cause of the civil war was slavery, and States’ rights. The Americans celebrated when the French overthrew its Absolutist monarchy. Sanctioned violence in France overflowed to the borders of Great Britain where they remained at war until 1815. Once the British war with France began depleting the British treasury. The war known as the French and Indian War is also known as the Seven Years War. The depletion of the treasury caused Britain, who decided the colonies had grown fat under their not so watchful eye to tax the Colonists on goods that had not previously been taxed. The Stamp Act of 1765, caused Parliament to take action, deciding that the colonies needed to contribute to their own defense. That action was followed by the British action to tax the Colonists on goods that had not previously been taxed. The final blow came when British forced the colonists to house and feed British soldiers. These collective actions made the colonists angry. The Colonists were without a representative in Parliament to peak for them. From these collective actions the phrase, no taxation without representation was born. Attempting to further cripple the colonists attempts for independence the English outlawed production of an American currency – and forced the colonies to borrow from British banks at high interest. John Adams stated that,† The revolution was effected before the war commenced. The revolution was in the minds and hearts of the people. † (Adams, 2010) Conclusion The American Revolution and Atlantic Revolution wasn’t one single event or conflict that lead to uprisings everywhere. They were interconnected sharing common political vocabulary and strong democratic character† While Nationalism and revolution often go hand in hand nationalism might lead to revolution, and perhaps national independence. Granted, â€Å"All nationalists believe that nations can be identified by certain characteristics that all its citizens hold in common. These characteristics include the linguistic, ethnic, religious, or historical traditions that make a nation distinctive. All nationalists†¦are linked across time by [a common] language, literary tradition, and history† (Gelvin 2011). How to cite Atlantic Revolution, Papers

Construction Planning and Execution

Question: Discuss about the Construction Planning and Execution. Answer: Introduction: Construction planning and execution of construction planning is the most challenging activity for the management of construction projects. Numbers of things are involved in this such as choice of technology, how work tasks are defined, estimated time for resources which are required and also for individual tasks, and identify the risk involve in different tasks. It is necessary for good construction plan that it develops after considering the budget and work schedule. Construction planning is the most difficult task that is done by the management of construction. After considering the above technical aspects that are mention above it is necessary that management also focus on various organizational decisions related to relationship between participants of project and which organization should be included in the project. Therefore, it is clear that construction planning is the base for construction project and it must be done with complete understanding of things (Project Management f or Construction, n.d.). In this report, we discuss the actions required to be taken by the project manager and action required to be taken by the contractor in case of compensation events. This report also contains the procedure for events notified by the project manager and procedure for events notified by the contractor. A part of this report contains the explanation on conditions guiding payment in the NEC 3 ECC conditions of contract, contractual standing in terms of conditions governing contractual program in the NEC 3 ECC conditions of contract and Dispute resolution methods that can be used to resolve the problem in the NEC 3 ECC conditions of contract. There is also a separate section which describes the comparison of advice given by NEC3 ECC condition of contract with condition of contracts either JCT11 SBC/Q or the FIDIC Red Book form of contract. At last, we conclude the report with brief conclusion. Compensation events: Compensation events are those events which change the cost of the project and time required to complete the project, but usually these events are not happened because of the fault of the contractor. Events which result in change of the price of the project, key dates of the projects, and completion date of project. In large number of case contractor demands more time and money to complete the project. There are some good examples of compensation events: Employers actions such as employer fail to provide access of land to contractor on time. Actions conducted by project manager such as instruction given by project manager to stop or delay the work. Actions of supervisor such as when supervisor gives instructions to contractor for searching defects in project, and no defects are found. Actions which are conducted by other people such as actions of statutory bodies and other contractors. Other events which are not in the control of any party such as whether conditions. The above mention events are mention in the clause 60.1 of NEC3 (Kingston, 2015). Actions taken by project manager in compensation events: in case if compensation event is arise because of the instructions of project manager which is related to search of defect or there are some changes in the work. In such case the first duty of project manager is to notify the contractor related to compensation event, and then instruct him to provide quotation. In case of all compensation events, contractor notifies the project manager. When contractor receive notification from project manager and also receive an instruction to submit the quotation then he submit the quotation within 3 weeks. The period of 3weeks can be extended by the project manager in an agreement. When notification is received by the project manager from the contractor he responds in no or yes. Project manager says no if: That action is the fault of contractor. Event does not occurred and not going to occur. That event does not affect the completion time of project or cost of project. Event occurred is not listed in the agreement or clause. In all their cases, except above mention cases the project manager says yes to contractor to provide a quotation. When project manager gives instruction to the contractor for providing the quotation, the project manger after discussion instruct the contractor to provide other quotations also which mention the alternative method of dealing with the event. In some cases when event is not clear then project manager state some assumptions, and if those assumptions are not right then it will be considered as another compensation event (SCE, n.d.; Hide, n.d.). Actions taken by contractor in compensation events: The next step is filing of quotation by contractor to the project manager. In NEC3 quotation deals with both compensation events that is time and money. It has a special place in the NEC3. On receipt of notification from project manager or supervisor related to any defect or other matter, then it is the duty of the contractor that he submits quotation for such notification to the project manger or supervisor. It is necessary that quotation is prepared by following the procedure stated in the contract, and when contractor submit that quotation to the project manager or contractor then he must include all the details of assessment. If compensation event has any effect on the completion date or price then quotation must include all the revised details of that program (Devonshires, n.d.). When project manager receipt the quotation then it is necessary that he respond within 2 weeks from receipt of quotation or any extended period. Reply of the project manger to the quotation must include these responses: Acceptance of quotation by project manager. Confirmation that a proposed event will not be instructed by project manager. One more notification from project manager that quotation was not prepared properly by contractor, and quotation must be submitted again. Project manager also states reason for that. A notification that project manager will assess the compensation event (CECA, n.d.). In the present case, Ministry of Health decided to construct a new university teaching hospital, and this project consist new build accommodation and the refurbishment of existing properties. This new project also has underground car park and a dedicated cycle centre and ten electric car charging points. The project was given on the basis of NEC3 ECC conditions of contract, and contractor will design the part of work as stated in the information. In this compensation event is occurred because of the fault of employer, as employer does not handle the site to the contractor on time because of which work delayed. There are some other faults from employer side as the employer does not work within the time shown on the accepted program. There are some other issues also supervisor does not reply to the queries of contractor, and he also conduct test. Therefore there are number of compensation events which cause delay in this project. This project was also delayed because of the fault of contractor as contractor does not made agreed payments to workman and also pulled them off from site which results in dispute, but these events does not consider as compensatory events because this is the fault of contractor. Conditions Guiding Payment in the NEC 3 ECC: Now, construction projects for public have special requirements related to payment. These special requirements are set up by the OGC that is Office of Government Commerce. For the successful implementation of any contract it is necessary that contract must contain fair and transparent payment practices. It is necessary for parties to working with each other in good faith and with mutual trust. On 1st January 2008 following payment commitments are set up by OGC: It is the right of the company that they receive full and clear payment on the due date. From ethical point of view it is not right that payments are delay, and holding of payments without any valid reason. It is necessary that fair payment will be decided between the contractor and client, and also throughout the complete supply chain. The process of payment must be transparent, and properly communicated to the members of supply chain that when and how much they received. Companies must consider whether it is appropriate to operate some relevant contracts on open book basis. The correct payment made by the client also represent that the work is carried out in proper manner, and products are supplied according to the contract. If client hold any amount then it must be partial, and withholding must be on valid reason that was justified according to the terms of contract. For ensuring the effective cash flow system under contract, it is necessary that contract of construction states provision related to regular payments and period of payment must not exceed more than 30 days. It is necessary to avoid the payment delay that clients and contractor must agree on the procedure related to payment at the outset of their agreements. Payment must be made through BACS transfer and will be transferred through supply chain. Procedure related to monitoring, auditing and dispute resolution must be agreed between the parties to the contract and stated in the contract (NEC3, n.d.). Procedure of payment under NEC3 Engineering and Construction Contract: When contractor get paid by the client? On each assessment date contractor calculate the amount due to the contractor. Calculation of amount due: the price for the work done till that date + any other amount that is due for payment to the contractor, and less any amount which is already paid to the contractor or retained from the contractor. Within 7 days from assessment date, project manager will certify the amount due to the contractor, and within 14 days from the assessment date the deadline for withholding must be issued to the contractor. Within 21 days from assessment date payment must be made to the contractor. In case if client does not pay the amount or send any withhold notice then in such case contractor has right to suspend the work or contractor can go for adjudication (CCC, n.d.; CCC, n.d.). Terms and conditions governing contractual program in the NEC 3 ECC: NEC3 contracts are the standard contracts, and they ensure good management of construction contracts, and also flexibility and clarity in contracts. These contracts can be used for the entire project, and they will be helpful in complete life cycle of the project. It is necessary that construction contract must contain some general clauses, and those general clauses are (NEC, n.d.): General terms- contract must include some general terms such as in case of any failure by any party in enforcement of any term, and then in such case such failure shall be considered as waiver of that term. Any waiver shall not affect the validity or enforceability of the contract. Contractors responsibilities- the employer, contractor, and project manager have a responsibilities which must be stated in the provisions of the contract, and it also stated not only contractual terms but some trust and co-operation terms also. Such terms must be defined in alphabetical orders, and some important terms are Equipment and Plant and Materials, key dates related to construction project, information related to site, etc. Time, testing and defects- in contract the completion date must be specified. It must contain provision related to period in which contractor submit the project to the client. Both starting and completion date must be set out in the contract. Starting date is necessary because from that date risk is passed to the contractor. Testing clause is required to test and inspect the work at the site by the client and other experts, and in case any defect is found then set the accountability for that defect. Compensation events- contract of construction must described the events which are considered as compensatory event in the time of construction, and also stated terms which relate to the effect of those events on completion time and key dates. It also states the events which are at employer risk and does not occur because of the fault of contractor. Payment- it is necessary that contract must define payment procedure, so that later conflicts can be avoided by the party. Payment option are mainly defined in these three key terms that is contract price, price for work done till that date, and defined cost of the project. Risk and insurance- contract also mention the risk involved in the contract, and which risk is covered by employer (NEC, n.d.; NEC, 2016). Dispute Resolution Mechanism under NEC3: In NEC3 contracts there are two approaches for resolving the dispute that is adjudication and arbitration. First stage is adjudication; if dispute is not resolved at this stage then second step is arbitration and litigation. ECC contracts provide two methods for dispute resolution that is W1 and W2. W1 is used at those contracts where Housing Grants, Construction and Regeneration Act 1996 are not applicable. W1 is the recycled version of NEC2 provision, and it mentions the right of parties related to adjudication. Whereas, W2 is usually used in UK, and this is different from W1 where any party can make referral of arbitration. The arbitrator can be decided by the parties, and his name must be named in the contract data. In case arbitrator is not mentioning in the contract or he resigned and unable to act then in such case parties can choose another arbitrator (Sheriden Gold, 2010). Comparison between NEC3 ECC and FIDIC: NEC and FIDIC are the standard form of contract, that become part of families for procuring works or consultancy services (FIDIC) and goods, works or services (NEC). In 1991 NEC was launched, and this contract is identified for the purpose of clarity, flexibility and to set good management practices (NEC, n.d.). FIDIC contract is a traditional form of contract, and used at international level, and in 2006, Palestine cabinet ratified this contract. In Gaza more than 37% Palestine use these contracts. Some main difference in these contracts is related to time, quality and cost. In NEC the project manager shall act on behalf of the employer and in FIDIC engineer act on the behalf of employer. Both the contracts have number of differences but both contracts are designed for the purpose of international use, and both have their roots in common law of jurisdiction (Besaiso, 2012). Conclusion: At last, the report is concluded that NEC3 contracts are standard family contracts, and are designed to use at international level. These contracts almost define every important aspect related to construction contract such as time, payment, compensatory events, risk, liability, etc. compensatory events are those events which change the cost of the project and time required to complete the project, but usually these events are not happened because of the fault of the contractor, and in the present case there are number of compensatory events which cause from the fault of supervisor and employer. In this report we described every important aspect of contract, and it is necessary in terms of contract that we state all the important clauses of contract in construction contract. 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