What is essential to achieve a fitness-for-purpose product on project completion and to ensure compliance by the various contractual stakeholders lies in the terms and conditions of contract. A great deal of difficulty has however been reported throughout the construction industry reflecting the problem area relating to contract clauses. and consequences are of various levels, all affecting costs, human effort, works quality and time.
With the increasing complexity of construction projects and huge funding expended, contract documents are becoming much more complicated to incorporate the objectives, requirements and expectations of owners and contractors. As a result, problems arise and claims are so common that they are becoming a way of life. the following major causes have for decades received special attention.
Mr. Bui Quang Luong made a case study that focused in the most significant contract clauses in the construction industry and their impact on project performance under various contract types. His objectives are to: (1) study the problems pertaining to construction contract clauses that have significant impact on project performance; and (2) provide strategic and specific recommendations on the drafting of construction contracts.
Based from his study, the problems that usually arise in the construction contract are related to international construction contract clauses. Contract preparation is considered vital to achieve improved project performance. Thorough contractual arrangements therefore play a crucial part in the process. It is important that the most problematic clauses be identified so that significant project impact can be successfully controlled. As a result of year-long research using the individual clause, clause family and contract type analysis approaches, nine most problematic clauses were consistently identified as being of primary concern and significantly impacting project success.
His study has successfully demonstrated an intensive exploration on the importance of contract clauses in the international construction business. A focus has been analyzed and found to be the most troublesome clauses that have significant impact in project performance. The findings resulted from thorough analyses based on individual clause, clause family and contract type analysis approaches. it is therefore important to take into special consideration the nine most problematic clauses that statistically and realistically affect contract execution and project delivery in terms of (i) frequency of occurrence; (ii) rates of major disputes; (iii) degree of seriousness; and (iv) frequent clarification.
His thesis abstract is copied and posted.
Abstract
Clauses are an essential part that constitutes a construction contract document. However, throughout its history the industry has witnessed a substantial number of disputes/conflicts of interest unfortunately characterized by the contract itself. Things are nowadays being made more complicated by a trend of long agreements where poorly drafted clauses are held responsible for even further project delays and worse, litigation. The main purpose of the study is to conduct an intensive exploration into the most problematic contract areas and to seek clauses that stand out as the most troublesome, and find appropriate strategic and specific recommendations to improve them. It is of prime importance that the contract strategy be formulated that gives a comprehensive picture of what has to be done to secure successful project delivery and to minimize losses and damages as a result of disputes and litigation. In addition, the careful drafting of contract clauses must be given utmost priority. During the course of execution, the owner’s behaviour towards the contractor should be on a fair and risk-sharing basis through careful risk allocation, cooperation and negotiation. Any negligence or lack of due care in these regards will eventually have to be paid for through large contingencies, disputes and litigation.
Some suggestions have been pointed out throughout his study; it is worth noting that contract preparation among other factors determines project delivery success. The drafting of contracts must receive special care and consideration should successful contract execution be achieved. A summary of the most common problems and proposed practice can be found in the following table.
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Tag: PM205A56. Let me share all of you about #5 Tips for Project Management Success,, I hope you enjoy it
1. Plan your day using time management techniques
As a project manager, time management skills are essential because you are dealing with a wide range of tasks that demand a quick turnaround time. Planning your day will go a long way in keeping you organized and increasing your productivity. Assist your task planning by using project management software which helps you track the work of you and your team.
If you are not very tech savvy, a simple to-do list can also be a great organizational tool. Prioritize your most important tasks by putting them at the top of the list and less important ones at the bottom. Having a visual plan of your daily tasks helps to keep you on track and aware of time.
Related post: Free ebook 104 secrets to become a great project manager
2. Include stakeholders in important project conversations
While you will have plenty of responsibilities regarding the project, don’t neglect your clients.
Good communication is essential is keeping both parties informed of project progression, curtailing scope creep, and apprised of changing requirements. Some clients may have different expectations when it comes to communication, so make sure to establish the frequency and type of communication (like emails, phone calls, and face-to-face conversations) at the beginning of your project.
Establishing communication expectations early helps alleviate stakeholder uncertainty about communication frequency and delivery.
3. Regularly communicate with your team
Daily team communication helps keep misunderstandings and unclear requirements under control. Keeping your team informed in every step of the project is essential to project management success.
For example, a study published by Procedia Technology found that good communication skills were the cornerstone of project management. The study examined over 300 “construction project managers, architects, construction managers, engineers and quantity surveyors” and their successes and failures on various construction projects.
4. Anticipate project setbacks
Even the best-laid plans often go awry.
Remember that even with a high amount of planning and attention to detail, your project may still encounter some challenges. Pay attention to complaints from stakeholders or colleagues, and other warning signs, like a missed deadline or cost overrun, that there may be a problem.
Preventing a crisis will keep your project running smoothly, save you a lot of time, and keep you, your team, and your stakeholders confident in progressing with the project.
Unfortunately not every complication can be avoided. Crisis management skills are essential for dealing with the unexpected. Project managers need to be flexible and pragmatic. Improvise and make sharp decisions when needed.
Related post: 92 free project management templates
5. Stay focused on the details
A common problem project managers encounter is having the project aims not aligned with the organization’s objectives. A great project manager will strategize a plan for the project to lead back to the overall success of the business.
Know your project’s scope by heart and avoid wandering outside of the project’s requirements. It’s too easy to get lost in minor details and forget what your focus is, so a well-planned project scope is essential for success.
And final, you should use KPI to measure effectiveness of the project, here are full list: 76 project management KPIs
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