Contract Management

What is a Contract?

Agreement between two parties (both sides think they will benefit)

Legally enforceable

Contract defines important parameters

of the agreementScope of what is being exchanged

Schedule

Price

Risk sharing

Why enter into a contract?

To use the resources or expertise of others

To complete a project or achieve a result

To acquire rights or property

OwnerOwnerOwnerOwner ContractorContractorContractorContractor

ContractorContractorContractorContractorContractorContractorContractorContractor

ContractorContractorContractorContractor

PipelinePipeline

Contract Blunders

Selecting the wrong contract partner

Not defining contract parameters (or not matching them to the situation)

Unenforceable provisions (illegal, unreasonable or erroneous)

Not following the contract

OwnerOwnerOwnerOwner

PipelinePipeline

EngineerEngineerEngineerEngineer

Sub-Sub-ConsultantConsultant

Sub-Sub-ConsultantConsultant

ContractorContractorContractorContractor

Contract management recommendations

Quality based selection

Appropriate risk sharing

Partnering agreements

Standard contract documents

Standard Contract Forms

AGC

AIA

EJCDC

Agency standard form

Consultants standard form

Template/Standard

Is familiar to parties involved

Has legal precedent

Uses established terminology

Lowers risk and costs

Modifying the Contract

Adapt to project needs (supplemental or special conditions)

Deal with the unexpected

Mutual agreement

Construction Contract Documents

• Bidding documents

• Agreement

• Standard conditions

• Supplemental conditions

• Technical specifications

• Addenda

• Change orders

Management Tools

Progress meetings

Progress reports

Payment applications

Progress incentives / delay damages

Retain a construction manager

Jared Oldroyd, P.E.Bowen Collins and AssociatesJOldroyd@bowencollins.com

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