For completing the Project successfully as planned, it requires expertise not from one person and success always will be accompanied with Team Work only, there can be several challenges from the bidding stage to completion stage and several members contribute several milestone events in bidding, bidding negotiation, receiving an award of contract, start of the project and completion of the project. Team Contribution, project expertise, contracts management expertise is the required parameter for successful completion of a project.
IMPORTANT ASPECTS OR REASONS FOR THE LOSSES IN THE PROJECTS:
- The scope of work: The micro-level examination of the scope of work is very essential. There is every chance after award of work, new areas of works may arise which parties may not be aware at the initial stage as it's not mentioned in detail. The micro level detail in the scope of work helps to avoid such losses if any.
- Extra Works or Variation Clause: Up to 90% in the projects execution, new work or extra works will arise. Change Order procedure to be strictly followed by the parties to ensure completion and billing for such extra works. If there is a miss in following the procedure, there is every chance at the later stage, there can be the delay in issuing the Change Order, a release of payments, etc. If there is a change in law clause with the procedure laid down in your contract and if the Team implements the same for extra works or variation clause for an issuance of a change order or variation order helps to avoid surprises on account of extra works.
- Price Variation Clause: Generally after executing the agreement and after starting the works, there is every chance that the cost in materials may increase and this results in the cost increase of the project for both parties. Initial planning at the time of bid avoids such surprises or having the price variation clause along with the procedure and following the procedure as laid down in your contract, will avoid such surprise in your contract.
- Change in Law: On execution of the contract, if there is an increase in costs due to change in the law, that costs are to be borne by either party and this may impact the profits to the parties as planned. Initial planning at the time of bid avoids such surprises or having the Change in Law clause along with the procedure and following the procedure as laid down in your contract, will avoid such surprise in your contract.
- Limitation of Liability: In a Project, there will be several contractors working in different areas and with different contract values, there is every chance of unforeseen events or incidents incurring direct or indirect or consequential damages which may result in an increase in overall project cost. Appropriate Planning, Strict Implementation of Safety Guidelines and having a limitation of liability and Consequential Losses clauses in your contract and thereby having a clear idea on liabilities to the parties on an occurrence of such events will help to manage the unforeseen situation every efficiently.
- Force Majeure and Insurance: Force Majeure events occur beyond the control of either party. On the occurrence of these events, there may be some loss that may incur to either party. Preplanning on the consequences of force majeure events is very much essential. Obtaining insurance policy on Force Majeure events will reduce the losses to either party. The team working on the project should be fully aware of the Force Majeure Event clause to enable them to manage the force majeure event efficiently.
- Delays in the project completion: Generally, this will be the crucial aspect for several projects for several contractors where the projects will land up in losses. Clear listing down the obligations of the parties at the time of execution of the project and also agreeing on the damages or penalties in your contract on the delays by either party supports you to mitigate losses that may occur due to this event. The team should maintain appropriate correspondence in writing clearly listing out the delay, reasons for delay and consequences or impact for such
delays like the increase in cost or time and the appropriate measures are taken or to be taken to be mentioned in that letters along with the appropriate clause.
- There are several clauses which may put either party in losses in their contracts.
WHAT JUSTACONTRACT.COM DOES IN TRAINING FACILITY:
- JUSTACONTRACT.COM Team will have thorough discussion with your Team and go through the contracts carefully that your company is executing.
- Prepare a list of the challenges in your contracts.
- JUSTACONTRACT.COM after thorough analysis and prepare a suggestion or prevention matrix along with the techniques in project management and contract terms and conditions as per the details mentioned in pre-contract support and contracts management support and also prepare a clear strategy of key take away through this contracts and project management training.
- Discuss with the Senior Management and finalize the prevention matrix, strategy and conclude on the key takeaway in the training.
- Accordingly, develop a Training Module with practical’s and questionnaire, etc.
- Conduct the Training to your Team to ensure strict implementation of the prevention matrix and support you for executing smooth execution of your project with planned profits.