Cotract Strategy
CONTRACT STRATEGY
At the early stage of a project and once a project manager is selected, the main issue that faces the owner is to decide on the contract strategy that best suits the project objectives.
Contract strategy means selecting organizational and contractual policies required for the execution of a specific project. The development of the contract strategy comprises a complete assessment of the choices available for the management of design and construction to maximize the likelihood of achieving project objectives. The scope of such contracts is very wide, from a simple purchase of standard article to multi-millionpound projects. The size and complexity of the contract matter vary accordingly.
A proper contract strategy for a project involves five key decisions:
- Setting the project objectives and constraints
- Selecting a proper project delivery method
- Selecting a proper contract form / type
- Contract administration practices
2.1 What is a Contract
A contract is defined as: "an agreement made between two or more parties which is enforceable by law to provide something in return for something else from a second party". Contracts can be very simple or they may be very long and complicated legal documents. When a contract is properly set-up it is legally binding upon. The two parties are expected to perform the various obligations they have undertaken, as expressed in a mutually agreed set of contract documents. A contract therefore, is necessary to protect both client and contractor. According to its simple definition, a contract is an agreement
Construction Management 20 Dr. Emad Elbeltagi enforceable at law, but not all agreements are contracts. Some elements must be present before an agreement becomes a contract. These elements are:
- Competent Parties: For an agreement to be a contract, there must be two or more competent parties. In order to be considered competent, a part must have a certain legal standing.
- Proper
At the early stage of a project and once a project manager is selected, the main issue that faces the owner is to decide on the contract strategy that best suits the project objectives.
Contract strategy means selecting organizational and contractual policies required for the execution of a specific project. The development of the contract strategy comprises a complete assessment of the choices available for the management of design and construction to maximize the likelihood of achieving project objectives. The scope of such contracts is very wide, from a simple purchase of standard article to multi-millionpound projects. The size and complexity of the contract matter vary accordingly.
A proper contract strategy for a project involves five key decisions:
- Setting the project objectives and constraints
- Selecting a proper project delivery method
- Selecting a proper contract form / type
- Contract administration practices
2.1 What is a Contract
A contract is defined as: "an agreement made between two or more parties which is enforceable by law to provide something in return for something else from a second party". Contracts can be very simple or they may be very long and complicated legal documents. When a contract is properly set-up it is legally binding upon. The two parties are expected to perform the various obligations they have undertaken, as expressed in a mutually agreed set of contract documents. A contract therefore, is necessary to protect both client and contractor. According to its simple definition, a contract is an agreement
Construction Management 20 Dr. Emad Elbeltagi enforceable at law, but not all agreements are contracts. Some elements must be present before an agreement becomes a contract. These elements are:
- Competent Parties: For an agreement to be a contract, there must be two or more competent parties. In order to be considered competent, a part must have a certain legal standing.
- Proper