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What is an Essential But Seldom Carried Out 1st Step

that Most Contract Administrator fail to do when the


Contractor is awarded a Construction Contract ?- A
Query by Steve Chinn

Rashid Hussain tries his best to respond through his expertise and
experiences to Steve Chinn’s Query

Construction contracts, such as FIDIC model contracts, are


relatively complex and cumbersome, and their composition needs
to be better understood. This uses a multi-functional approach that
is widely recognized in the contract literature, and anatomizes FIDIC
model contracts in order to gain a holistic and comprehensive
understanding of them.

The FIDIC Conditions of contracts and the FIDIC forms are used
extensively in international construction projects, particularly for the
private sector and large investment companies and on projects
funded by the World Bank, where the band reviewed the contract
drafts

Comparative analyses of the distribution of the three functions,


namely control, coordination and adaptation, in four forms of FIDIC
model contracts explore how project delivery systems (PDSs) affect
contract design. After a classification framework that includes three
functions and ten subclasses was established, the FIDIC 1999
series model contracts were coded sentence by sentence using
content analysis. The results show that the three functions are all
non-trivially reflected in construction contracts and are influenced by
project complexity. Regarding different PDSs, the complexity of
contract control is relatively rigid; the complexity of contract
coordination is largely influenced by PDSs; and the impact of PDSs
on the complexity of adaptation provisions depends on the sub-
class. The conclusions may help scholars and practitioners
understand construction contracts from a functional perspective,
and offer references for contract designers to reasonably consider
the distribution of the three functions in construction contracts.
The first step to a successful contracting process is to clearly state
expectations, including scope and outcomes. Scope shifting is
a common issue that can derail any contract, so taking a written
record of what exactly the contract covers and what doesn`t will help
keep the contract on track. Akin all forms of construction contracts,
whether standard forms or tailored contracts, construction claims
often arise and construction dispute may develop generating a case
which needs dispute resolution technique such as Arbitration to be
applied depending on the contract agreement dispute resolution
clause.

Prudent practitioners and contract parties shall be aware of all


particulars and elements may contribute to construction contracts
claims and dispute resolution management, delay, changes, and
pertinent events. Consequently, protect the project from suffering
lengthy and expensive additional technical and administrative work
such as meetings, negotiations, corrective actions, and disputes in
the extreme. Existing practice includes and provides the process of
FIDIC contracts management as a regular practice.

In general, the project contract includes the contract documents,


which establish and define the relationship among the project
parties and creates the basis for all contract management
procedures right from initiation to close-out of a project, including
claims and disputes management. FIDIC construction contracts
through some physical case studies and laid down internal company
procedures which are imbibed for lessons learned from previous
contracts can identify procedures, e-claims and dispute resolution
mechanism that will provide a practical anatomy for different claims
and dispute resolution management. Through this perception, it is
thought construction industry apostle may develop a viable most
effective Contract Documents comprising of FIDIC and ‘particular
conditions of clauses’ which means to avoid, mitigate, and
manage the claims and disputes domain, hence developing more
timely completion of successful projects, relationships and smooth
close-out for all practitioners.

Thanks n cheers!

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