Introduction:
In a project
with multitude of disciplines working in tandem towards a common objective,
each discipline is given noticeable importance at some or the other in a
project lifecycle, for example: during the early stages, there is more focus on
engineering than let’s say during middle & end stages where procurement and
/ or construction are on the driving seat. One of the underrated disciplines in
a project is Contracts Management. The mechanisms of a Contract are always in
motion, silently working in the background to adapt to the everchanging playing
field.
A contract
holds the key to regulate the project, wherein it binds two or more parties
into a legally enforceable agreement that defines and governs their respective
obligations. At pre-award stage, it integrates personnel, processes,
methodologies to manage the project, so that at post-award stage, it can save
time, improve performance, mitigate delays, manage risks and add value to the
project.
Typical
Contracts Lifecycle Management process involves:
·
Prepare
and propose: Recognize all essential documents and link them to support the
purpose.
·
Draft
and negotiate: Use boiler plate templates and combine them with clear business
rules and terms to minimize the negotiation time.
·
Execute
and manage: After review and completing internal approvals, authorized
personnel from each party executes the contract by signing. Thereafter,
management of respective obligations and responsibilities begin.
·
Change
and renew: Recognize occurrences that deviates from the contract and formalize
them, in writing, vide variations, amendments, change orders or renew for a
particular period.
·
Close-out
and Exit: Upon fulfilling all the respective duties, parties close out the
contract through attaining acceptance certificates and waive off their rights
on liabilities towards each other with clearance forms.
Please contact
us at info@pcmo.world and one of our
senior representative will get in touch with you.