Contractors and contracting

It is essential that the administration and management of contracts results in reducing risks, maximizing cost savings, minimizing claims and improving economic return. These results can only be achieved through effectively managing contract risks: developing tough but fair contract documents, engaging in aggressive negotiating practices and employing outstanding communication skills.

The process of reaching a contract requires a specific sequence of steps. In taking these steps, the project manager must make a series of choices between priorities for project objectives, degrees of risk to be assumed by the contracting parties, control over project activities and the cost of achieving selected goals.

This process must first be fully understood by the project manager, then be tempered by experience, and finally be expanded into the ability to reach a contract through the exercise of negotiating and communicating skills.




This section looks at the nature of contracts and why we need them.

Overview of contracting

Understanding the nature of contractors and how to select them

Contract pricing

A review of several forms of pricing that can be incoporated into a contract

Project control

Some ideas for the type of clauses that should be included for the purposes of controlling the project schedule



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Thanks to Ignacio Manzanera for providing this book


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