A contract is a legally binding agreement between two or more parties. Construction contracts are important for both the parties to clarify the expectations in terms of quality, quantity, materials’ brand, scope of work, engineering drawings and approvals. A well-defined contract can help reduce the risks of disputes and claims. Therefore, a contract should be crafted methodically step by step. In fact, these days, many construction companies are hiring construction contract service for managing their contracts. As a leading contract management service provider, we share with you the steps involved in the contract lifecycle management:
1.Contract creation: This is the initial stage where one construction party approaches the other and requests a mutually beneficial contract. This will be done as many times when the requirement arises. The only aim is to create a system that suits the company’s requirements.
Things that are done at this stage involve:
●Drafting of contract with clear terminologies and clauses.
●Speeding up the things with pre-agreed terms.
●Considering all the past issues that occured in the construction contract and improvement is done accordingly.
2.Contract negotiation: This is the time consuming stage in construction contract life cycle management as it involves many back and forth between both the construction parties involved. Here it is an important role of contract management services to agree on the terms and conditions without jeopardising the construction company’s requirements and related laws. This is the time when the involved parties can cross check their requirements and agree on timelines, penalties and fines. Once the parties agree with the terms and conditions, the construction contract management can move forward to the next stage.
3.Contract award: This is the stage where all the approvals have been received and terms and conditions are accepted. Here both the construction parties sign the contract documents. After signing from the parties involved it is considered approved for the execution stage.
4.Contract execution: All the above mentioned stages are there for the smooth execution of the contract. Attention is provided to each and every detail and regular monitoring of the construction of the project is done so that there is no violation of the contract. Sometimes due to poor execution of the construction contract, most of the problem arises at this stage. Big construction projects require a site visit to monitor if everything is going according to the timeline or not. To avoid any legal issue, claim or conflict, it is advisable to hire services of a good contract management company like Contract Square Pvt Ltd. We provide the following services:
●Thorough contract review and continuous monitoring & evaluation is done for perfect execution.
●Regular examining of the site conditions to check if there is any variation.
●Proper identification and documentation of any change in scope, quantity, and approvals which may lead to any delays and leading legal claims.
●We will move all the contracts to a centralised system and create a secure repository.
●Make comprehensive reports.
To know how we can help your construction company, call us at 9051739355.
5.Contract close-out: In construction management services, the construction project close-out is considered to be the final stage. This is the phase when the final construction of the project is completed but not finally handed over to the owner.
