For example, in your project, the purchase of a particular item can depend on so many things. Be realistic about whether the contract end date is completely set in stone and, if not, consider the circumstances in which they may request an extension. With your knowledge of the contract and the functioning of your organization, you need to know how to design the contract in the tender in order to have certain expectations. Also know how to negotiate during the bidding process. For example, if you reach a certain milestone or need to ask the contractor for deviations. You will also understand what information should be included for contractors` payment claims, etc. I learned about construction contracts through various experiences. I worked in contract management when I started my career. They also sent me to contracts and tenders for specific trainings conducted by law firms. For my master`s degree in project management, I chose contract law as an option. It was the most useful and relevant topic in my studies. In short, the contracts are about the allocation of risk.

You need to know what you are signing up for. The more complicated and expensive your project is, the more seriously you need to make sure that a proper contract exists. When you receive quote quotes, contractors will spell out their acceptance and exclusion clauses (and if you don`t, I`d be worried). Learn how to analyze them and see if the contract says anything about these situations. Also consider what the contract says and compare it with what is actually realistic. For example, I worked on organizations where they had different preferences for how they received securities (bank guarantees or cash holdbacks). Or how seriously they take late costs and liquidated/consequential damages. I have found that some organizations are generously using interim money and others are not. Some organizations like to add contractual clauses to contractors to get results. And others like to have them in their back pockets and take them out when they need them. Project managers are always under pressure to acquire and assign the contractor as quickly as possible.

Because of this constant pressure, I wouldn`t be surprised if all the project managers hadn`t actually read the contract. Or they had time to think carefully about how to set up a contract. Your career path and experience with construction contracts would be different from mine. But wherever you are in this field, if you work in this industry, you need to have a good concept for construction law. Here are my 5 tips to help you better understand and use construction contracts. There are many types of construction contracts and they all differ slightly in the responsibilities and procedures of each party you need to follow. By reading them, you can understand what you need to do if you encounter a particular scenario. The GC21 standard form is suitable for construction contracts over $1 million.

GC21 may also be suitable for construction contracts valued at less than $1 million if there are special circumstances and/or requirements (e.g. B the use of milestones). The general terms and conditions of GC21 Edition 2 build on the experience and success of the Edition 1 project, which focused very effectively on cooperation contracts and improved communication between the parties. Issue 2 focuses on streamlining, updating and improving contract operations to reflect experience and practices. The requirement for contractors to use the GC21 subcontract was abolished in Question 2 and replaced by a short list of mandatory requirements to give the contractor and subcontractors flexibility in their business arrangements. You need to know your contract as your project could go south (I had to rewrite this sentence several times to avoid inappropriate language). When this happens, the first thing everyone will do is review their contracts. I have experienced this several times in my career so far. If possible, also ask your manager about training or courses on construction contracts. I took the GC21 contract training as well as the general training on public procurement and contract management and found it very useful. All the organizations I worked in had different views on certain contractual issues. To better understand your business, once you`ve had a chance to read the contract, ask your managers or colleagues how they handled certain situations.

For example, has the organization ever claimed lump sum damages from contractors before? If you are drawing up a construction contract or simply using one, take the time to read it. This will help you identify your responsibilities. In summary, since your project can go south, you need to know how construction contracts work and what the responsibilities of each party are. Use the resources above to learn about the law. Understand how your business works so you can learn how to set expectations and negotiate with your contractor before and during the project. I hope that your project is going well and that everyone knows what it is for. Note: The following files are designed for individual use and should not be combined into an electronic document. Combining files corrupts styles and tables of contents. Following the 2nd point, if you are not sure about the terminology or concepts, these websites will help you. They are incredible resources and I always preach about them.

Have them saved in your browser`s bookmark. Use these sites if you have a question, or browse them if you have free time. You need to consider many scenarios and be reasonable about how to allocate the risk between the principal and the contractor. Otherwise, the contractor will allocate a significant amount in its offer to take into account the risks. Or you take too many risks and release the entrepreneur from responsibility and not get the desired results. Or your project can turn into a legal dispute. Disclaimer: This blog post is my opinion, please do not understand this as legal advice. For more resources, see the Construction category page. .