Contracts Management

A Practical Approach
Effective Contract
Management Practices For the
Project Managers, PT&D-UAE.
Manikandan Sadavanni
06th February 2016

What is Contract Management?

Definition:
is the process of systematically and
efficiently managing the contract
creation, execution and analysis for
maximising operational and financial
performance; and minimising risk
- CIPS Contract Management Guide

Objective of Contract Management

Automate and Improve Contractual Processes
Achieve ever-increasing need for compliance
and analytics
Reduce disputes and surprises
Expected business benefits and value for
money for the parties
Changes and Risks Management
Mutual co-operation and responsiveness
Make the Parties understand their contractual
obligations

Contract Management - Process

Upstream (Pre-Award) Downstream (PostAward)
Business Case &
Service Deliverable
Approvals
Developing Contract
Relationship
Strategy
Management
Risk Assessment
Change Management
Contract Exit Strategy
Contract Administration
Contract Management
Risk Management
Plan
Specification &
Contract Closure
Requirements
Form of Contract

Objective From PT&D UAE

Perspective
Structure
Sensitizing the Project Management
Team and other Users
Switch from Reactive to Proactive
Institutionalize
Develop a Competent Team
Reduce disputes and surprises
Vendors meet (minimum) performance
criteria

Two Major Challenges

Variations
Delay & EOT

Delay & EOT Claims

Notice
Detailed Particulars
Interim Particulars
Final Particulars

Grant of EOT

Critical Success Factors

1. Proper understanding of the objectives
at the project initiation phase
2. Project Documentation and Record
Keeping
3. Team Members Role Identification &
Awareness
4. Monitoring the Work Program
5. Changes and Change Orders (timing!!)
6. Timeliness of Notification
7. The Formulation of the Claim
8. Strategic Project Management

Critical Failure Factors

1. Ignorance of the impacts of Change &
Change orders; Notification
Requirements
2. Lack of Strategy
3. Team Weakness and Lack of Awareness
4. Poor Project Planning
5. Failure to identify Concurrency of
Delays
6. Gold Plating
7. A Biased Engineer
8. Improper claim formulation

Contract Administration
Notice
Detailed Particulars
Interim Particulars
Final Particulars

Authorities Delegation
Record Purpose Only
Highly important to put in the notice

5 Major Areas of Records

1. Comprehensive Records of the
relevant documents & date
2. Progress Reports
3. Emails, verbal directives by Client
4. MOM
5. Photographs with date / time stamp

If, No Records
Difficulty in formulating
Loss of time in retrieving info
Loss of evidence
Weak and Poorly
Substantiated Claim

Rejection

Also, high
cost to
employ claim
specialists

Customer Meetings
Raise concerns of pervious meeting point
(if any)
Raise the key concerns & issues and
while ending request to minute it.
Review of draft minutes and suggest
proper amendments.
Circulations Internally.
Watch for instructions / records.
A key avenue for contemporary records.

Progress Reports
Highly important to have accurate
information.
A key source of contemporary record in
case of a claim/arbitration.
Will result in a accurate project diary for
all purposes Claims, learnings, data bank
etc.
Include Weather report, site conditions,
hold-ups due to Client, RFI status with
response timelines

Thank You

Delay & EOT Claims

Delay & EOT Claims

EOT Claim in FIDIC

Claims Management