Contracts Management In The Construction Industry

Introduction:

In a project with multitude of disciplines working in tandem towards a common objective, each discipline is given noticeable importance at some or the other in a project lifecycle, for example: during the early stages, there is more focus on engineering than let’s say during middle & end stages where procurement and / or construction are on the driving seat. One of the underrated disciplines in a project is Contracts Management. The mechanisms of a Contract are always in motion, silently working in the background to adapt to the everchanging playing field.

A contract holds the key to regulate the project, wherein it binds two or more parties into a legally enforceable agreement that defines and governs their respective obligations. At pre-award stage, it integrates personnel, processes, methodologies to manage the project, so that at post-award stage, it can save time, improve performance, mitigate delays, manage risks and add value to the project.

Typical Contracts Lifecycle Management process involves:

• Prepare and propose: Recognize all essential documents and link them to support the purpose.
• Draft and negotiate: Use boiler plate templates and combine them with clear business rules and terms to minimize the negotiation time.
• Execute and manage: After review and completing internal approvals, authorized personnel from each party executes the contract by signing. Thereafter, management of respective obligations and responsibilities begin.
• Change and renew: Recognize occurrences that deviates from the contract and formalize them, in writing, vide variations, amendments, change orders or renew for a particular period.
• Close-out and Exit: Upon fulfilling all the respective duties, parties close out the contract through attaining acceptance certificates and waive off their rights on liabilities towards each other with clearance forms.

Contracts ensure that parties involved in the project meet their respective obligations to deliver an accomplished project. Petrocontracts has extensive experience of auditing contract documents to capture risks in the minute of details that not only ensures compliance to contractual obligations but also connects the dots for improving the contracting position. Petrocontracts offers services in both Pre-award and Post-award Contract phases. Our credible expertise helps you to secure the best possible value from the contract, throughout its duration. Petrocontracts will be pleased to provide a more accurate assessment, additional information about Petrocontracts' specific expertise, experience in handling claims, and available resources. Please contact us at info@petrocontracts.com and one of our senior representative will get in touch with you.