One partner may commit heavily to the alliance while the other partner does not. Partners may fail to use their complementary resources effectively. 5. Explain two of the legal collaboration options. (12 marks) Unit Trusts - It is a form of collective investment constituted under a deed. A single fund is formed through a trust unit that groups investor money, which is managed by a fund manager. Strategic Business Alliances - While each company maintains its independence, through a strategic alliance an agreement is made between two companies to carry out a mutually beneficial project. The contract is less complex and less binding than a joint venture, in which two companies pool resources to create a separate business entity. 6. Explain the following terms. (15 marks) Commercial environment: Forces outside of business / marketing that affect marketing management's ability to develop and maintain successful transactions and relationships with its target customers. Commercial framework: This is when two parties that recognize issues relevant to the relationship and allow them to continue to advance within the agreed terms of trade agree.
PAA: The Project Alliance is a business (legal) structure between a department, as a 'owner' participant, and one or more parts of the private sector as a non- owner (NOP) or 'service provider' for providing one or more capital works projects. 7. What are the roles and responsibilities of the following: (15 marks) Independent Verifier: To assure the Owner that the alliance effectively and efficiently designed and built the work to meet PAA requirements is done through the Independent (IV) verifier. Financial Auditor: Provides an assessment of each applicant's financial aspects to be used in the selection process. Thus, it is possible to identify the main activities such as investigating the financial capacity of each tenderer and the cost structures of the tenderers and obtaining a clear understanding of the proposed cost allocation between corporate overhead and reimbursable costs. Legal Advisor: is the viewer Legal Adviser who through this Alliance Legal Adviser will provide information and legal advice to the owner. Including as key PAA project development activities advice on EOI and RFP terms and conditions, as well as advice to the Owner in the proponents' comments on the PAA project.
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