Tracking development contract progress is essential for any real estate developer who wants to deliver quality projects on time and within budget. Development contracts are complex and involve multiple parties, scopes, milestones, and payments. How can you monitor and manage them effectively? Here are some tips and tools to help you.
The first step to track development contract progress is to define clear objectives and expectations for each contract. This includes the scope of work, the deliverables, the timeline, the budget, the quality standards, the communication channels, and the dispute resolution mechanisms. You should also specify the roles and responsibilities of each party, the reporting requirements, and the performance indicators. Having a clear and detailed contract will help you avoid misunderstandings, conflicts, and delays.
The second step to track development contract progress is to use a contract management system that can store, organize, and update all your contracts in one place. A contract management system can help you access and review your contracts easily, track their status and performance, send and receive notifications and reminders, and generate reports and analytics. You can also use a contract management system to automate some tasks, such as invoicing, payments, approvals, and compliance checks.
?? The contract management system is usually a multi-faceted system in which many departments are involved. From identifying the need in the project management team to formulating technical details and estimates in the technical and engineering team and finally bidding and concluding the contract. ? What is usually overlooked is the incompatibility of contractual duties and obligations with the project management and planning system, which causes disruptions and contradictions. ? It is better for us to assign a system like CRM to contract management so that we can monitor the status of the contract live from aspects such as financial, legal, administrative, technical, managerial, etc., and have active management.
The third step to track development contract progress is to communicate and collaborate regularly with your contractors and stakeholders. You should establish a regular communication schedule and method, such as weekly meetings, phone calls, emails, or online platforms. You should also share relevant information, feedback, and updates with your contractors and stakeholders, and encourage them to do the same. Communication and collaboration can help you identify and resolve issues, adjust plans, and maintain trust and transparency.
There are many schools of thought on Communicating regularly. There is certainly a fine line between updating team members and being concise vs. "actively working" on collaboration calls while other folks wait. Stike a balance and set a weekly and monthly time budget that is reasonable for the scale and complexity of the projects.
The fourth step to track development contract progress is to monitor and measure the performance of your contractors and contracts. You should use the performance indicators and reporting requirements that you defined in the contract to evaluate the quality, timeliness, and cost of the work. You should also compare the actual performance with the planned performance, and identify any gaps or deviations. Monitoring and measuring performance can help you track progress, ensure accountability, and improve outcomes.
The fifth step to track development contract progress is to review and revise your contracts as needed. You should review your contracts periodically and check if they are still relevant, accurate, and compliant. You should also revise your contracts if there are any changes in the scope, timeline, budget, or quality of the work, or if there are any disputes or claims. Reviewing and revising contracts can help you keep them up to date, flexible, and fair.
The sixth step to track development contract progress is to use a project management tool that can integrate with your contract management system and help you manage your overall project. A project management tool can help you plan, execute, and control your project activities, resources, and risks. You can also use a project management tool to visualize your project progress, track your milestones and deadlines, and communicate and collaborate with your team and contractors.
The ultimate control tools are contractor draws and monthly owner/contractor on site inspections. Progress can be verified on a one by line basis. These meetings are also the time review potential change orders.