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Top Tips for a Successful 2016 in Construction Contract Management
TOP TIPS FOR 2016
The construction sector is on a roll – but there are still plenty of traps
savvy commercial directors should avoid.
WHAT’S THE WORST
WAY TO MANAGE A
Just allow it to run its own course…
Because even in this
exciting new resurgent
era for construction,
our ideas about how
things will work out
aren’t always realistic.
Multiple variables mean
a contract that isn’t
proactively managed can
go very wrong at any point,
right from the very start.
So it’s not yet a wonderful
world – and astute
should be prepared for
WE’VE GOT A SIGNED CONTRACT –
WHAT CAN GO WRONG?
For instance, you could be hit for six by:
SUICIDE BIDS INEFFICIENT
CONTRACT MANAGEMENT IS
THE PROCESS THAT ENABLES BOTH
PARTIES IN A CONTRACT TO MEET
THEIR OBLIGATIONS IN ORDER TO
DELIVER THE OBJECTIVES REQUIRED
FROM THE CONTRACT.
– Taylor Walton Solicitors.
In March 2013, an underground rail route between
London and Welwyn Garden City used by two
million passengers every year was closed when
two huge piling rigs from a construction site
above crashed into a tunnel – just ahead of a train.
THIS MUST BE HELD
Neal Lawson, Managing Director, First Capital Connect
Risk management and
software can help you
plan for what might
seem unforeseeable. If
the worst happens, it
can help you to recover
quickly by having
suitable contingency and
insurances in place.
TOP TIPS FOR
BUILD ON FIRM FOUNDATIONS
Good data held in an efficient software system can help
you tender successfully, manage procurement by tracking
prices, and source reliable suppliers and subcontractors
by monitoring best practice.
FACT:ONLY 45% OF CONSTRUCTION
PROJECTS ARE COMPLETED
BUILD GOOD RELATIONSHIPS
Construction projects typically evolve as customers
change their minds. Construction management
software can help keep your contract variations up to
date and support you in negotiations.
The Duke and Duchess
of Cambridge refurbished
an existing kitchen in
their Kensington Palace
apartment. But when they
decided to add a private
family kitchen, reconfigured
from office space, the total
cost of the redevelopment
rocketed to £4.5m.
JOB DONE – AND AFTERWARDS
Over a long project, it can be easy to let data slip away.
Retentions are a classic case. It can be difficult to keep
track of their status and that can be costly.
Once again, good construction management software
can take the strain.
In one recent case…
Contractors changed their payment terms so the
subcontractor would get 2% less if they were paid
now – or they could get the full amount in 120 days.
This is still within the fair payment rules. If you
do need to resort to litigation, it’s crucial to have
robust data at your fingertips to support your case.
MANAGE YOUR CONTRACTS
SUCCESSFULLY BY LEARNING
THE LESSONS FROM OTHER
Planning in construction projects cannot anticipate every eventuality
and problems can arise even when a signed contract is in place.
Construction management software can help keep contract
variations up to date.
Data loss and inaccurate statuses are commonplace over lengthy
projects, but construction software can help address these problems.
Recognise these characteristics of
highly-efficient construction companies?
OF HIGHLY EFFICIENT