How can you manage contract changes during execution?

Read the Full Contract RFC: The contract outlines the rights and responsibilities of both parties involved in the construction project - the owner/client and the contractor. By reading the entire contract, you can clearly understand what is expected of you and the contractor throughout the project. This helps prevent misunderstandings and disputes later on.

The contract of a large size infrastructure project generally tackles many uncertainties and hence requires changes during the currency of contract. In such a scenario or otherwise also, the contract can be managed only by understanding the contract terms with the intention of earliest resolution of any dispute arise out of the difference of opinion w.r.t. any provision of contract. There is no alternative to the understanding of the contract terms while executing a contract seamlessly. Generally, the contracts are drafted to take care of any eventuality during the currency of contract but it's always the interpretation of contract terms that spoils the smoothness of the execution of the contract.

Effective communication is a two-way street, and it's essential to build and maintain trust and rapport with your stakeholders and clients throughout the contract management process. Respond to emails and inquiries in a timely manner, even if it's just to acknowledge receipt and provide an estimated time for a full response. Effective communication with stakeholders and clients during contract management is crucial for ensuring a successful and mutually beneficial business relationship.

In today's dynamic world, technological advancement, environmental & safety concerns, business environment varies at a rapid pace. Hence, no contract can be completed without changes. Any change requires time, resources and money to tackle. Hence, the expenditure incurred by the contractor to counter changes is required to be paid by the owner with suitable overhead & profit charges. However, sometimes the contractor tries to arm twist the owner by asking unreasonable time and cost compensation. Communication plays a very vital role at this stage. The efficient communication with clarity of changes and cost & time compensation may lead to a win-win situation to both the parties of contract and beneficiaries thereafter in public projects.

Under my experience it is crucial to document and track contract changes. First, you need to be sure that the latest contracts revision is in order and all stakeholders have been prompted. Secondly, keep the Contract Change Log updated today, do not let things to be updated tomorrow. And please, audit both internal and external clients to guarantee that everybody is informed and that the last version is applied. These steps will make it easy the payment to contractors, avoiding future claims; and contracts close out process will work out. Thank you.

Excellent contracts formation will procure excellent contracts management / administration. Therefore in the stage of contracts management / administration neat document management along with logs duly updated is crucial to allow successful and traceable contracts close out without claims and delays.