contract management. what is a contract? agreement between two parties (both sides think they will...
TRANSCRIPT
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Contract Management
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What is a Contract?
Agreement between two parties (both sides think they will benefit)
Legally enforceable
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Contract defines important parameters
of the agreementScope of what is being exchanged
Schedule
Price
Risk sharing
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Why enter into a contract?
To use the resources or expertise of others
To complete a project or achieve a result
To acquire rights or property
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OwnerOwnerOwnerOwner ContractorContractorContractorContractor
ContractorContractorContractorContractorContractorContractorContractorContractor
ContractorContractorContractorContractor
PipelinePipeline
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Contract Blunders
Selecting the wrong contract partner
Not defining contract parameters (or not matching them to the situation)
Unenforceable provisions (illegal, unreasonable or erroneous)
Not following the contract
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OwnerOwnerOwnerOwner
PipelinePipeline
EngineerEngineerEngineerEngineer
Sub-Sub-ConsultantConsultant
Sub-Sub-ConsultantConsultant
ContractorContractorContractorContractor
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Contract management recommendations
Quality based selection
Appropriate risk sharing
Partnering agreements
Standard contract documents
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Standard Contract Forms
AGC
AIA
EJCDC
Agency standard form
Consultants standard form
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Template/Standard
Is familiar to parties involved
Has legal precedent
Uses established terminology
Lowers risk and costs
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Modifying the Contract
Adapt to project needs (supplemental or special conditions)
Deal with the unexpected
Mutual agreement
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Construction Contract Documents
• Bidding documents
• Agreement
• Standard conditions
• Supplemental conditions
• Technical specifications
• Addenda
• Change orders
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Management Tools
Progress meetings
Progress reports
Payment applications
Progress incentives / delay damages
Retain a construction manager