"Many construction companies lose money because their Project Managers or Construction Managers have failed to understand the contract"
Many construction companies lose money because their Project Managers or Construction Managers have failed to understand the contract or have not acted in accordance with the contract.
#constructioncontracts #constructionmanagement #constructionlaw
Why construction managers must understand the project contract
Not understanding the construction project contract document could lead to the following amongst others:
1. not submitting project valuations on time, or with the correct supporting documentation Negative cash flow – the death for many construction companies
2. not ensuring the contractor is paid on time The CONSTRUCTION project MANAGER'S financial duties
3. carrying out work outside the project scope
4. not ensuring the client meets their contractual obligations
5. failing to submit claims and variations timeously Should construction project managers take the lead with variation claims?
6. not following the correct insurance claim procedures Don’t Screw Up Your Construction Insurance Claim!
7. failing to meet the project milestones Will your construction project be completed on schedule? Read this
It’s therefore important the Project Manager carefully reads the contract, noting important items and asking for advice when they are unsure of anything.
Don’t start construction projects without a proper contract
(This is an extract from 'Building a Successful Construction Company - The Practical Guide' by Paul Netscher)
© 2022 This article is not to be reproduced for commercial purposes without written permission from the author.
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Copyright 2016 - The attached articles cannot be reproduced for commercial purposes without the consent of the author.
The opinions expressed in the attached articles are those of the writer. It should be noted that projects are varied and different laws and restrictions apply which depend on the location of the contractor and the project. It's important that the reader uses the supplied information taking cognisance of their particular circumstances. The writer assumes no responsibility or liability for any loss of any kind arising from the reader using the information or advice contained herein.
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