Securing the Success of Your Project : Reviewing Contracts
The construction contract you prepare or sign up to has a big impact on the success of your project. Preparing or reviewing that contract properly and in context is therefore fundamental to your success.
In the first of a series of articles on procurement and contracts, we set out below some reminders as to how to approach a contract review. These apply whether you are a principal, a head contractor or a subcontractor.
The most important thing to consider when reviewing a contract is context. If you do not understand the project, its background and what your business wants to get out of it, your review might be incomplete or inaccurate. Consider the contract in light of the project and its aims ie: does it adequately address the nuances of this particular project? Even with tenders, it is not just about pricing.
What is the purpose of reviewing this contract? If it is a tender, that will influence the way you approach the review ie: you might only look at key risk issues, and consider whether you need any contract departures. If you are reviewing the contract to brief your manager or board on what it says, you will probably focus on more than just the key risk issues eg: are there step in rights that affect your financing?
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