This second assessment for the module “developing contracts in procurement and supply” uses terms and conditions (T&Cs) for explaining their relevance to organisation procurement and supply management (PS&M) operations. This is in regard to ensuring ADNOC effectively manage risks of poor quality, extension of time, increased costs and unethical practices. This is while evaluating the relevant performance measures monitoring and management. Also, the concept of “battle of the forms” has been explored with best practice of ensuring agreements are pursued under organisation own terms and conditions.

The key findings evidence that the ADNOC use selected T&Cs for effective management of factors of quality, time extension, costs overruns and unethical aspects. The findings also evidence the various Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) which impact on organisation stakeholders’ relations in PS&M strategies. A summary of T&Cs is presented in appendix section in summary. For battle of the forms, the main findings identify its existence as informed by differences in T&Cs between the vendors/suppliers and organisation due to differences in their T&Cs. The findings of this report provide a case law which can be referenced and inform the best strategy for managing battle of the forms.

There are different gaps identified in this project which can be managed by embrace of various recommendations including;

Improving ADNOC identified T&Cs for improved KPIs inclusion for different areas of stakeholders relations
Agreeing on T&Cs elaborately from the biggening phase of contract implementation or mitigating battle of the forms challenge
Elaborately note on the components of Force Majeure essential for inclusion in the management of the risk of quality and extension of time for example COVID-19 pandemic
Aligning the T&Cs of ADNOC with UAE legislations and policies including the Emiratisation (localisation)

2.0 Introduction

2.1 ADNOC Organisation Background

The Abu Dhabi National Oil Company (ADNOC) is one of the world’s leading energy producers and contributes to the UAE’s economic growth. The company was founded in 1971 and currently operates various upstream, midstream and downstream operations (refer to Figure 1), producing approximately 4 million barrels of oil and more than 11.5 billion cubic feet of natural gas per day (ADNOC, 2025). The organization is based in Abu Dhabi and has several subsidiaries focusing on the exploration, production, refining, petrochemicals and logistics. ADNOC plays a strategic role in securing the UAE’s energy needs while supporting its global energy exports.

ADNOC’s Current Operations

Figure 1;ADNOC’s Current Operations

Source: ADNOC (2025)

In recent years, the company has placed strong emphasis on digital transformation and operational efficiency, integrating advanced technologies such as artificial intelligence, big data, and enterprise resource planning (ERP) systems to modernize its operations (Nongrum, 2019). This commitment to innovation ensures ADNOC remains competitive, sustainable, and aligned with the UAE’s long-term economic diversification vision. For the purpose of achieving their set objectives, the PS&M department has upto AED400 Million for their operations. Part of this budget is management of different stakeholders’ relationships with their operations informed by service-based agreement, frameworks, purchasing and FIDIC for their T&Cs. A summary of their T&Cs is illustrated in appendix section.

2.0 ADNOC T&Cs Introduction

For this assessment, the selected T&Cs which are titled “Purchase of Goods” are used in different categories of spend by ADNOC. Therefore, they can be classified as blanket and embraced for general sourcing for different spend categories. A summary of ADNOC spend categories where the T&Cs are used are as illustrated in the following;

Figure 2:Spend Areas in ADNOC using the T&Cs

Source: Internal Documents of ADNOC

To introduce the relevance of the T&Cs in distributing risks, a Mendelow Matrix Analysis can be used. According to CIPS (2024), this is a tool used in analysis of different stakeholders to identify their interest and power. The analysis is presented as follows;

Figure 3:A summary of ADNOC Mendelow Matrix Analysis

Source: Summarised from CIPS Module Notes

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