How can you draft a construction contract with the best clauses?

Project description and brief plays very important and major role, it defines the roles and responsibility of each stake holder. Also it illustrates very well if any free issue material to be provided by Employer, and what care to be taken by contractor.

In Construction, The Project Description are clearly specifies Contractor Responsibility on Technical Specifications, Workmanship Required, Time Frame, Liquidity Damages, Resource Mobilizations, Terms of Payments, Secured Advances, Contractual Risks, QCP/Safety Plan, Cash Flows Statement, BOQ, Contractual Claims / Settlements. Contractor should do the Feasibility Studies apart from whatever written in the Project Descriptions on-Site Field Area such as availability of Core Material Location, Removal of Temporary Obstruction / Encumbrance Clearance, Nature of Localities etc.

In my experience the advance payment clause shall be read carefully in conjunction with recovery of advance payment. If the rate of Amortization is not same rate of advance paid, one shall check carefully to avoid negative cashflow.

The Payment Terms can be Drafted in such a way that, it should not affect the Net Cash flow of the Project. In Construction, Normally Adhoc Payment of up to 70% within 7/10 Days of IPC (Interim Payment Certificate) Submission may be Incorporated in Contract Document to Facilitate the smooth cash flow of the Contractor. Some Contract document allow to claim the Sale against Materials Received at Site and other provide Secured Advances for Core Material Procures to ease the burden of cash flow statements. The Rate of Recovery of such Advances are may be, 100% advance should be Recovered upon completion of 90% of Contract Value Awarded. Finally, The Project Progress is mainly affect because of Poor Payment Terms described in Contract.

Change order is not recommended if the project is running smoothly i.e SPI and CPI are equal or greater than 1 no need to go for change order. However if the project is delayed and SPI & CPI is less than 1 , change order is one of the remedy to gain the time from Employer , and cover the cost.

Dispute resolution is very sensitive topic, and Employer and contractor do not want to go to Arbitration , and they try to solve the issue amicably and mutually. Some times Employer may go to Arbitrator but contractor may not prefer, as it will create negative image for him in future projects , as the other Employer ask contractor before entering to new contract for any previous dispute with other employer.

The ADR - Alternative Dispute Resolution is a Modern remedy for the Dispute Resolution. The ADR is Supersede the traditional Mode of Resolution which have a length legal Processes. The Middle Arbitrator is Appointed by both the Party to provide a Effective Resolution in a Speedy and Cost Effective Manner. In India, the Law are constructed Mainly to Support the Contractor who may lose the Monetary in any Disputed Process.

One thing i found useful to share here, that record the Early start up or partial Handing over of the section of part of the scope of work, to start the warranties at earliest. It is found that the Warranties Start from the Total Handing over of project , which is some times not in favour of contractor, it should be fair enough.

Defect Liability Period: The DLP of 12 or more month is incorporated in Contract for Free Maintenance to be done by contractor for a said Period. Warranties: 10 or More Years of Warranties normally included in Contractor clause on Specific Nature of Work such ATT (Anti Termite Treatment), Water Proofing, Glazing Work, Structural Stability, External Cladding Work, Special False Ceiling Works, Special Machineries / Fixtures etc. For all above the warranty Bond should have Exclusion clause also such as Force Majeure, Manmade malfunction on Systems, Limitation of usage, Violation of Usage. The warranty clause should also specified the time frame etc rectify the defect. In Liabilities, the Retention Money of 5% or more may be under hold till DLP

The Termination of Contract may be Triggered if the contractor may breach any clause in the contract and not rectify the same within specified time period mentioned in the contract such as , Failed to Mobilize the Required Resources as per Agreed Terms, Failed to Invest Money for the Said Contract, Poor Workmanship, Repeated Failure of Achieving Mile Stone Prescribed etc. Mostly, for Every Contract Termination, customer is First Encash the Bank Guarantees Provided by the Contractor with or without Intimation. The Termination clause should also speak about the Recovery of Any Excess Amount paid to the Contractor through Plants / Materials available at project Location etc.

1. Involve end-users in the software selection process to enhance onboarding, implementation, and long-term adoption. 2. Recognize that training is not solely about choosing the right software; it involves understanding and aligning with the current work processes performed by the users. 3. Acknowledge that training is an ongoing effort, requiring periodic assessments and adjustments to accommodate evolving needs and technologies.