This assignment module “developing contracts in procurement and supply- managing risk and performance through terms and conditions”, an explanation of terms and conditions in an organisation have been provided. The terms and conditions (T&Cs) are used in Emaar Properties and used in their general purchasing and supply process. This is in terms of use of the terms and conditions in managing risks of poor quality, extension of time, increased costs and unethical practice. Also, the relevant performance measures monitoring and managed by use of the terms and conditions has been explained. The analysis of the terms and conditions follow the application of CIPS Module Notes and internal data from Emaar Properties.

This report key findings explain that Emaar Properties T&Cs are used in managing the risks associated with quality. Emaar Properties being a real estate organisation prioritise on the factor of quality with costs management for guaranteeing their profitability. This is identified in the stakeholder’s analysis for example which evidence T&Cs define the scope of relations hence successful management of performance and any unethical practice. The key findings in this assessment also identify battle of forms as impacting how the Emaar Properties suppliers align well with their T&Cs.

In this assessment, different gaps have been identified. To manage them, best recommendations include;

Expand the clauses in the T&Cs to be more focused and contentment for successful ESG enforcement
Improve supply chain relations for harmonising the T&Cs to avoid battle of forms and ESG enforcement
Accommodating legislations inclusive of UAE localisation content for T&Cs in organisation operations
Benchmarking T&Cs of competing organisations for enhancing digital contract tools
Enhancing awareness among PS&M department for successful T&Cs implementation

2.0 Introduction

2.1 Emaar Properties Organisation Background

Emaar Properties (“EMAAR”) has been in operation from 1977 being a leader in integrated master-planned communities. It is enlisted in the Dubai Financial Market and a leader in the significantly high real estate organisation internationally (ICD, 2025). The organisation has been evolving and leveraging on strengths for diversifying their business segments including the malls management, entertainments, hospitalities and the commercial leasing. Owing to the broad organisation operations, it currently has upto 108,000 residential units in Dubai and different international markets.

Figure 1:Emaar Properties Main Projects

Source: Summarised from (ICD, 2025)

In Emaar Properties, the organisation operates a fully-fledged PS&M which has its own budget for operations. With an overall recorded revenue of approximately AED35.5 billion ($9.6 Billion), majority of it is reimbursed back in their different procurement and sourcing strategies (Emaar Properties, 2025);

Figure 2:Emaar Properties PS&M Department Organisation Structure

Source: Summarised from Emaar Properties (2025)

Further, the PS&M department in Emaar Properties operate in active collaboration with other departments. This is for guaranteeing success in procurement and supply process of different products and services.

2.2 Context of Terms and Conditions (T&Cs) in Emaar Properties

For the selected T&Cs, they are used in Emaar Properties sourcing different spend categories. This is for the best business dealings of the EMAAR and the suppliers. The different terms and conditions are as summarised in appendix 1. Today, Emaar Properties has been investing in different projects including the latest Oasis Materplan valued at approximately AED41.0 billion/US$11.0 billion) involved in construction of Heights Country Club & Wellness and Grand Polo Club & Resort all spanning 141 million square feet integrated with a significant value of AED96.0 billion (US$26.0 billion) (Emaar, 2025a). Having a net asset value of approximately AED177.5 Bn, upto 60% of these resources are used PS&M operations. With approximately 27,000 residences currently being developed in UAE by Emaar Properties, they engage multiple suppliers in their operations.

For the purpose of identifying the T&Cs importance in their management of risks and category of spend, the Kraljic Matrix Analysis can be referenced (CIPS, 2024). A summary of Emaar Properties Kraljic Matrix is illustrated here;

Figure 3:Kraljic Matrix Analysis

Source: Summarised from (CIPS, 2024)

Leverage Items- Identified as having low supply risk and high profit impact, the machinery and steel plates in different construction projects. The T&Cs is used in managing the need to possess holistic procurement power and target-based pricing.

Strategic Items- The stakeholder’s relationship is essential in this category owing to the high supply risk and profit impact. The T&Cs are used in managing the risks of existence of bad stakeholders’ relations.

Bottleneck Items- This has high supply risks and low profit impact and entail the logistics, food products and leisure services and consultations. The T&Cs are relevant in managing the risks linked to Force Majeure.

Non-Critical Items– Affected by low supply risks and profit impact, the T&Cs play a facilitative role in implementing the contracts. The office supplies, repairs and consumables are sourced through an ardent negotiation on how to manage costs and quality needs.

To conclude, as evidenced in the Kraljic Matrix evaluation, the T&Cs are essential to ensure managing risks in different risks define the PS&M operations.

3.0 Risk Management through terms and conditions

3.1 Managing risk of poor quality

In PS&M context, quality is defined as meeting both technical and non-technical characteristics in the process of sourcing products and services. For the various spend areas, the risk of poor quality is evidenced by stakeholders assigned functions, resolving their challenges and continuously monitoring the quality levels. The Emaar properties T&Cs note that;………..

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