Infrastructure & Commercial Contract Management to Prevent Claims
More often than not, poor contract administration is fatal to contractors particularly when the contract contains strict time bars for submission of notices and claims for variations, delay costs and extensions of time. That is why it is vital that all project participants familarise themselves with the contractual matrix and the administrative requirements of the contract before the project commences. At Construction Legal, we have provided contract management and contract administration services to some of Australia’s largest infrastructure projects as well as assisting medium to smaller players on commercial and mixed use developments. Our aim is to help our clients achieve great outcomes through the proper use of the contractual mechanisms in the contracts. We know the areas where problems will occur if contracts are not managed properly. Some of the services we provide on large to small scale projects include:
- Identification of key project risks and developing systems to manage them during the design and construction phase
- Preparation of user guides and training manuals for claims and notices
- Training sessions regarding the proper administration of key elements of the contract, including delay, disruption, variations and payment
- Reviewing head contracts and identifying the risks and obligations upstream and downstream
- Assistance with preparing progress claims, variations and extension of time claims
- Preparing ‘back to back’ subcontractor agreements and tender packages.
The objective of claims prevention is to keep the number of claims minimised throughout the project. Most claims can be mitigated, if prompt resolution action is taken. Claims prevention involves being having awareness of potential claim situations and taking appropriate action to avoid them. For the most part, it is a matter of good project and contract management. At Construction Legal, we can assist and educate project teams in their efforts to reduce the probability of claims. Our systemic approach to construction claim prevention is to encourage dispute resolution and settlements where possible in a fast and cost effective manner. We can provide the following specific services during a project’s construction phase, to ensure the overall success of the project:
- Advising on requirements, objectives and intent of contract documents
- Implementing a document control system to capture, code and file all construction-related documents properly
- Assisting with defining each project personnel’s role and responsibility
- Identifying the allocation of risk between the parties to the contract and putting in management measure in place to address those risks
- Implementing performance criteria to communicate expectations and measure each party’s progress
- Coordination of activities involving multiple parties
- Implementation of cost, schedule and quality control procedures.