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Top Tips for a Successful 2016 in Construction Contract Management

The construction sector is on a roll – but there are still plenty of traps savvy commercial directors should avoid.

Top Tips for a Successful 2016 in Construction Contract Management

  1. 1. TOP TIPS FOR 2016 SUCCESSFUL CONSTRUCTION CONTRACT MANAGEMENT The construction sector is on a roll – but there are still plenty of traps savvy commercial directors should avoid.
  2. 2. WWW.EQUE2.CO.UK WHAT’S THE WORST WAY TO MANAGE A CONTRACT? Just allow it to run its own course…
  3. 3. WHY? Because even in this exciting new resurgent era for construction, our ideas about how things will work out aren’t always realistic. WWW.EQUE2.CO.UK
  4. 4. Multiple variables mean a contract that isn’t proactively managed can go very wrong at any point, right from the very start. WWW.EQUE2.CO.UK
  5. 5. WWW.EQUE2.CO.UK So it’s not yet a wonderful world – and astute commercial managers should be prepared for any eventuality.
  6. 6. WWW.EQUE2.CO.UK WE’VE GOT A SIGNED CONTRACT – WHAT CAN GO WRONG? PLENTY
  7. 7. WWW.EQUE2.CO.UK For instance, you could be hit for six by: SUICIDE BIDS INEFFICIENT CONTRACTS POORLY- TRACKED RETENTIONS RELATIONSHIPS WITH CUSTOMERS OUTDATED CONTRACT MANAGEMENT SOFTWARE
  8. 8. WWW.EQUE2.CO.UK 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.
  9. 9. YOU DON’T HAVE A CRYSTAL BALL. WWW.EQUE2.CO.UK
  10. 10. WWW.EQUE2.CO.UK CASE STUDY 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.
  11. 11. WWW.EQUE2.CO.UK WHOEVER IS RESPONSIBLE FOR THIS MUST BE HELD TO ACCOUNT. Neal Lawson, Managing Director, First Capital Connect
  12. 12. WWW.EQUE2.CO.UK Risk management and construction management 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.
  13. 13. WWW.EQUE2.CO.UK TOP TIPS FOR SUCCESSFUL CONTRACT MANAGEMENT:
  14. 14. WWW.EQUE2.CO.UK 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.
  15. 15. WWW.EQUE2.CO.UK FACT:ONLY 45% OF CONSTRUCTION PROJECTS ARE COMPLETED WITHIN BUDGET.
  16. 16. WWW.EQUE2.CO.UK BUILD GOOD RELATIONSHIPS WITH CUSTOMERS 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.
  17. 17. WWW.EQUE2.CO.UK CASE STUDY 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.
  18. 18. WWW.EQUE2.CO.UK 3 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.
  19. 19. WWW.EQUE2.CO.UK BE AWARE 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.
  20. 20. WWW.EQUE2.CO.UK MANAGE YOUR CONTRACTS SUCCESSFULLY BY LEARNING THE LESSONS FROM OTHER CONSTRUCTION COMPANIES.
  21. 21. WWW.EQUE2.CO.UK REMEMBER: 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.
  22. 22. Recognise these characteristics of highly-efficient construction companies? 7 CHARACTERISTICS OF HIGHLY EFFICIENT CONSTRUCTION COMPANIES DOWNLOAD NOW

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