Contract awareness and administration: key insights

Construction Projects are complex and high stakes. These Projects carry numerous risk elements, including but not limited to Scope of Works (SOW), Design Philosophy, Site Conditions, Weather, Interface Matrix, and express or implied contractual provisions. To effectively mitigate or (alleviate) these associated risks, Contract serves as the ultimate guide as it defines the rights, responsibilities, and obligations of Parties involved, establishing the framework for risk allocation, payment structures, timelines, and dispute resolution. Without a clear understanding of these contractual provisions, Projects are susceptible to mismanagement, cost overruns, delays, and legal disputes.

Project Team Response to the CAD

Once the CAD presentation has been reviewed and discussed with the key personnel, it should be distributed to all the Project departments. Each discipline must thoroughly understand the Contract requirements for their scope of work and become familiar with the Contract procedures.

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Why is contract awareness important in construction projects?

Construction projects are complex and carry significant risks. A clear understanding of the contract helps mitigate risks, avoid mismanagement, and reduce the likelihood of delays, cost overruns, and disputes.

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