Contract management


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Contract management

  1. 1. Contract Management
  2. 2. Construction Contract Administration (CA) <ul><li>Process of review, verification and assurance of all aspects of the Bid and Contract Documents. Time , money & quality are the main items which are assured by the Construction Administrator. The Construction Administrator ensures that all members of the Project Team are performing their responsibilities per the requirements of the contract, specifications and drawings (Contract Documents). </li></ul>
  3. 3. Project Management (PM) <ul><li>Use of resources to accomplish project objectives. </li></ul><ul><li>In the implementation phase of a project , the objectives to be achieved (managed) are time , money and quality objectives. Thus the vital link between Project Management and Contract Administration. </li></ul>
  4. 4. CA and PM main objectives <ul><li>As such, both Contract Administration and Project Management must encompass the following: </li></ul><ul><ul><li>Applying knowledge, competencies, and skills </li></ul></ul><ul><ul><li>Defining, planning, scheduling, and controlling </li></ul></ul><ul><ul><li>Leadership, communicating, and coordinating </li></ul></ul><ul><ul><li>Starting up and dissolving project teams </li></ul></ul><ul><ul><li>Balancing requirements, schedule, and resources </li></ul></ul><ul><ul><li>Being sensitive to people </li></ul></ul><ul><ul><li>Managing both deliverables and processes </li></ul></ul>
  5. 5. Project definition <ul><li>A project is a temporary, organized human endeavor to provide a solution to an identified need </li></ul><ul><li>As such, a project should have the following characteristics: </li></ul><ul><ul><li>Has specific objectives </li></ul></ul><ul><ul><li>Has a defined beginning and end </li></ul></ul><ul><ul><li>Is unique </li></ul></ul><ul><ul><li>Is bounded by schedule, budget, resources, performance, and other requirements </li></ul></ul><ul><ul><li>Produces deliverables (end items) </li></ul></ul>
  6. 6. Project definition (cont.) <ul><li>Therefore, a Project is different from: </li></ul><ul><ul><li>A program which is a group of related projects, and </li></ul></ul><ul><ul><li>Operations which are ongoing functional work </li></ul></ul>
  7. 7. Lets now define what is involved in Project Management, and what is the involvement of the Contract Administrator
  8. 8. <ul><li>A Project Manager should: </li></ul><ul><ul><li>Understand the project </li></ul></ul><ul><ul><ul><li>Clarify problems and project objectives </li></ul></ul></ul><ul><ul><li>Structure the organization </li></ul></ul><ul><ul><ul><li>Clarify organizational relationships and roles </li></ul></ul></ul><ul><ul><ul><li>Recruit the team </li></ul></ul></ul><ul><ul><li>Build the team </li></ul></ul><ul><ul><ul><li>Develop individuals into a cohesive team </li></ul></ul></ul><ul><li>A Contract Administrator should: </li></ul><ul><ul><li>Understand the project </li></ul></ul><ul><ul><li>Understand the project organizations </li></ul></ul><ul><ul><li>Play appropriate role within project team </li></ul></ul>PM an CA involvement
  9. 9. <ul><li>A Project Manager should: </li></ul><ul><ul><li>Analyze the context </li></ul></ul><ul><ul><ul><li>Determine the outside factors and actors that might influence or be influenced by the project </li></ul></ul></ul><ul><ul><li>Prepare the work breakdown structure Responsibility Matrix and Master Summary Schedule </li></ul></ul><ul><ul><ul><li>Organize all project deliverables and components hierarchically </li></ul></ul></ul><ul><li>A Contract Administrator should: </li></ul><ul><ul><li>Understand the context </li></ul></ul><ul><ul><li>Understand & participate </li></ul></ul>PM an CA involvement (cont.)
  10. 10. <ul><li>A Project Manager should: </li></ul><ul><ul><li>Plan and schedule with critical path method (CPM) </li></ul></ul><ul><ul><ul><li>Prepare detailed activity based schedule </li></ul></ul></ul><ul><ul><ul><li>Identify dependencies </li></ul></ul></ul><ul><ul><li>Design control and reporting systems </li></ul></ul><ul><ul><ul><li>Prepare tracking and reporting systems for scope changes, progress, and expenditures </li></ul></ul></ul><ul><li>A Contract Administrator should: </li></ul><ul><ul><li>Understand & participate </li></ul></ul><ul><ul><li>Understand & participate </li></ul></ul>PM an CA involvement (cont.)
  11. 11. <ul><li>A Project Manager should: </li></ul><ul><ul><li>Organize procurement </li></ul></ul><ul><ul><ul><li>Prepare for letting and managing contracts </li></ul></ul></ul><ul><ul><ul><li>Procure services, equipment, and works </li></ul></ul></ul><ul><ul><li>Execute and control the work </li></ul></ul><ul><ul><ul><li>Begin work on deliverables </li></ul></ul></ul><ul><ul><ul><li>Track and control progress </li></ul></ul></ul><ul><li>A Contract Administrator should: </li></ul><ul><ul><li>Understand & participate </li></ul></ul><ul><ul><li>Understand & participate </li></ul></ul>PM an CA involvement (cont.)
  12. 12. <ul><li>A Project Manager should: </li></ul><ul><ul><li>Terminate the project </li></ul></ul><ul><ul><ul><li>Disband the project team </li></ul></ul></ul><ul><ul><ul><li>Ensure completion of commitments of all parties involved </li></ul></ul></ul><ul><ul><ul><li>Turn control over to operations personnel </li></ul></ul></ul><ul><li>A Contract Administrator should: </li></ul><ul><ul><li>Participate </li></ul></ul>PM an CA involvement (cont.)
  13. 13. Lets finally define the main tasks involved in Construction Contract Administration
  14. 14. Contract administration tasks <ul><li>Developing proper and accurate bid and contract documents </li></ul><ul><li>Ensuring compliance with contract documents </li></ul><ul><li>Ensuring compliance with local applicable laws and regulations </li></ul><ul><li>Ensuring quality control by overseeing, inspecting and reviewing sampling and testing of materials and work </li></ul><ul><li>Ensuring compliance to time constraints through progress monitoring and control </li></ul>
  15. 15. Contract administration tasks (cont.) <ul><li>Administering payments and effecting project cost control. </li></ul><ul><li>Negotiating and processing of change orders and other contract modifications in a timely manner (including claims and dispute resolution) </li></ul><ul><li>Ensuring proper Project closeout </li></ul><ul><li>Promoting good public relations </li></ul><ul><li>Setting and maintaining a high professional standard </li></ul>
  16. 16. Main topics <ul><li>Risk Allocation in Construction Contracts </li></ul><ul><li>FIDIC Design & Build, Turnkey & Construction Contracts </li></ul><ul><li>Observation & Inspection Forms as a Means of Contract Administration </li></ul><ul><li>Meetings as a Means of Contract Administration </li></ul><ul><li>Contractual Letters </li></ul><ul><li>Project Close-Out Procedures </li></ul><ul><li>Claims & Dispute Resolution </li></ul><ul><li>Preparation & Evaluation of Claims </li></ul>