Contract Risk Management

Would you sign a Standards Australia contract with over 400 amendments?

Hi and welcome to Theory & Practice of Estimating Electro-Technology Projects.

In this LinkedIn Feature we want to share with you some thoughts and experiences regarding Contract Risk Management.

Now...if you're going to work in Construction you NEED TO READ THIS FEATURE to understand the structured development in the commercial construction sector of serious POWER IMBALANCES in contractual relationships.

Image of Dalrymple Bay Coal Terminal (DBCT) Stacker Reclaimers - Electrical and Fiber Optic Trailing Leads and Fiber Optic Slip Ring Alterations and Additions Tendered and Project Managed by the Author.

Now we all know we will be signing a contract if we work in Construction and we all know it's wise to use AS 4906-2002 to avoid the Structural Imbalance between Contractor and Sub Contractor......RIGHT?

Why?

However.....did you know AS 4906-2002 can be reproduced with permission by SAI Global under licence?

Want to see SynergyPro's list of 2 pages identifying the page and quantity of amendments on each page of an IMBALANCED CONTRACT?

All too often during my career I've witnessed Directors...Estimators & PM's sign contracts with scant or little regard for Contract Contents and Conditions...then complain half way through the Project that they're going out the back door...then expect their staff to Double Down their efforts...because THEY FAILED TO READ THE CONTRACT!...I know I've missed contents and conditions when under pressure.

One of my competitors and very good mate of mine...regularly worked for a Construction Company under an IMBALANCED CONTRACT when I asked him why?...he said...they Pay on time!...After I impressed upon him to read his Contract he ceased all future works with them and never Tendered another project for them again...he was very-very lucky he did'nt lose everything.

Now the IMBALANCED CONTRACT I refer to consists of more than 70 pages...we will not detail or use every page here...however...I cannot stress enough the importance and value of reading and understanding every page of a contract before you even start the Tendering Process...I use the ZOOM Technique when vetting my Tenders!

Now working in the Construction Business is Hazardous...when the Structure and Insolvency rates are considered.

From our training we know the level of exposure to a Hazard determines the Level of Risk and that Eliminating the Risk is the Highest Level of Control in the Hierarchy of Risk Management.

You know from my Web Site - Utube Channel and previous post Survival and Growth of Electrotechnology Business in the 21st Century that I consider Risk Management of Tender documentation just as important...if not more...than the Tender Price...if you get that far?

When I was invited to Tender on a Project using the same IMBALANCED CONTRACT and compared this to the original AS 4906-2002...I got to page 14 then BINNED IT!

Why?...Check out my Video below....

Fail to Understand What You're Signing.....

Then Plan to Fail

Want to Learn More About SynergyPro and the Author?

For anyone with Electro-Technology experience and competency interested in UEECO0001 (Supersedes and is equivalent to?UEENEEC005B) Estimate Electro-Technology Projects accredited qualification...or maybe an alternative to their current Estimating Methods and Procedures…this training course has been developed for you!

Want to apply for UEECO0001 (Supersedes and is equivalent to?UEENEEC005B) Estimate Electro-Technology Projects accredited qualification Training?

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Want to receive a brief virtual demonstration of "My Quote Mate" via OneDrive?

Want to apply for "My Quote Mate" Estimating Licence - Software -Training - Software Amendments?

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