Contract Management

Contract Management

Introduction

The construction and building industry is a significant part of the economy of any country. Competent mangers for the construction companies are inevitably required for the management of contracts of projects. The success of the project gets guaranteed when the duties of management of such projects are assigned to qualified people. A competent construction project manager oversees the tendering process of the whole project (Ogunsemi et.al, n.d., p.6). In this report, the project manager has discussed key points of the construction project. The main areas discussed in the project include the offer of the contract, acceptance and settlement of the contract. Besides that, the letter of intent has also been discussed in it. The payment terms and conditions of the construction project have also been elaborated. The potential areas of disputes that arise every now and then in construction projects due to a wide range of reasons are also discussed and the ways to counter these disputes are proposed. The health and safety issues are considered the most important part of the project development for the people involved in the project. Special emphasis is given in the project lifestyle to these issues. The important health and safety issues in regard to the construction project have been emphasized in this study. In the last part of this report, a proper structure for business planning has been discussed. Proper scheduling and planning of constructions projects has been thoroughly discussed as it lays the foundation for the success of any project.

Offer

The offer consists of specifications and drawings for the clarification of complete costs related to the project. Contractor is the one who is responsible for inspection and surveying of the works. The contractor will be needed to execute all the works mentioned in the offer. The contractor should check all the contracts for timely completion. The bill of quantities is also included in the offer (Uher, 2004, p.162). The contractors offer their rates for all the works. If there are errors present in the bills then they are the liability of the investor. At any cost, the contractor should be paid for all the completed works. The provisional sum of all the works and the terms and conditions for payments are all well defined the offer. Contractor`s wish to hire subcontractors and purchasing of equipments outside the European union is also included in it (http://multiproject.org).

Payment Terms and Conditions

Payment terms and conditions are required to be thoroughly understood by all parties involved in the construction project. One of the most significant aspects of this process is complete and timely payment for the work that has been completed. It is the responsibility of the subcontractors and contractors to confirm the ability of the owner to pay for the offered construction services. It is the contractor`s responsibility to find out the ability of the owner for the payment of the project and to convey promptly such information to all the people involved in the project during the course and at the outset of the project ...