Eliminate risks in architectural, engineering and construction contracts
Phase 2 - The building phase - contract execution
There are 3 principal phases in the contract management process for construction projects. Each phase has its processes and procedures that need to be followed and completed.
The building phase - execution of the contract
Once plans have been completed and agreed upon, the project moves into the building phase. Construction project managers will have to coordinate with suppliers of required materials, construction workers, engineers and architects who drafted the plans to execute the contract. He or she will have to manage the budget for the project and track the progress of construction. This includes monitoring the time it is taking and the quality of the work that is being performed. He or she will also need to closely monitor the safety for all involved in the construction process.
The roles and responsibilities of all involved in the project will need to be properly defined in writing. The relevant employment or contractor agreements need to be properly constructed and workplace health and safety policies need to be written and communicated to all on site. Contracts with suppliers will need to also be drawn up and monitored. Some, if not all of these documents, may be drafted in the planning phase. However, the execution phase may require they be reviewed, updated and re-worked periodically to take into account new developments.
Some of the principal risks in phase 2 of construction projects include:
- Wasting time wading through paperwork to locate, negotiation upon, amend or refer to documentation;
- Miscommunication among the many and varied personnel involved in the project leading to adverse incident e.g. construction workers not being aware of and not following workplace health and safety procedures resulting in injury or even death;
- Failure to track to progress of the various aspects of the project leading to failure to identify areas where it is not tracking to plan and addressing these - resulting in substantial delays.
A modern contract management systems can assist in minimizing these three risks in the following ways:
- Allows for contracts to be easily amended when necessary as well as capturing the details of negotiations for these amendments so time is not wasted in this process;
- Allows for updates to documentation to be communicated to affected parties immediately e.g. workplace health and safety policy changes can be communicated to construction workers with the touch of a button to avoid miscommunication;
- Stores all contracts and relevant documentation in one central location for easy access so time is not wasted in searching for a contract or other document;
- Allows you to configure reminders for monitoring various aspects of the project in relation to obligations and stipulations under various contracts and other paperwork so you never fail to appropriately track progress.
In the next article in this series we will examine the risks in the third phase of construction, the closure stage, and how these risks can be minimized.
ContractRoom (www.contractroom.com) is a negotiation and contract lifecycle management software that can be leveraged for reducing risks in construction projects and is the home of #PredictiveAgreement - to learn more about how you too can “negotiate less, agree more” schedule a live, free demo: