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

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

Contract Administration • Notice • Detailed Particulars – Interim Particulars – Final Particulars • Authorities Delegation • “Record Purpose Only” • Highly important to put in the notice .

verbal directives by Client 4. MOM 5.5 Major Areas of Records 1. Comprehensive Records of the relevant documents & date 2. Photographs with date / time stamp . Emails. Progress Reports 3.

high cost to employ claim specialists… . No Records • Difficulty in formulating • Loss of time in retrieving info • Loss of evidence Weak and Poorly Substantiated Claim Rejection Also.If.

• Circulations – Internally.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. • Watch for instructions / records. . • A key avenue for contemporary records.

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

Thank You .

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Delay & EOT Claims .

Delay & EOT Claims .

EOT Claim in FIDIC .

Claims Management .