CONTRACT MANAGEMENT – it's importance?
All business relationships stand on one basic foundation and that is contract. An efficient contract management process is therefore essential for the contracting parties to not only react to situations that arise while performing a contract, but also to proactively anticipate future needs of each other and manage their respective contractual obligations efficiently.
In today’s increasingly litigious business climate, risk abounds as enterprises try to navigate the regulatory, governance and legal issues that impact business practices and ultimately profitability. Although organizations rely on contracts to protect their interests and their assets, the accelerating volume and increasing complexity of contracts present a daunting challenge across the enterprise.
Contracts, and construction contracts in particular that require a high degree of interdependence between the contracting parties and other external agencies, go far beyond than just ‘laying down the law’ and provide the framework on how the parties to the contract should interact with each other and with other stake holders to a contract. It also provides the rules and guidelines on how the obligations are to be performed so that all involved and responsible to manage a contract is clear on what is expected of them. These set of rules and guidelines allow the contracting parties to manage the contract and fulfill their respective contractual obligations.
An efficient contract management function not only assists in managing obligations of the contracting parties in an effective manner by improving the visibility of the obligations but also records deviation and breach of such obligations that create potential for claims.
The efforts and controls applied in Contract management should ideally be proportionate to the value, risk and complexity of the contract. Unfortunately, contract management starts getting its due attention only when a serious problem occurs and sometime it is too late as by that the time the contracting parties have either defaulted in fulfilling their contractual obligations or already in dispute on the boundaries of their obligations and at loggerheads on defending their individual positions.
In the present days of ever increasing cost and force of competition, a superior contract management is one of the key elements to achieve sustainable business growth.
Contract Management is the “need of the hour” to avoid dispute, balance cost, prevent loss of profit and remain compliant without missing on a single opportunity to earn the due revenue from contracts while working in a complex business environment with the ever changing factors influencing the performance of contracts. Our contract governance process with fully synchronized interfacing functions will help maximize our clients’ contract revenue.
CONTRACT MANAGEMENT – How Can we help you?
All projects require a certain amount of supervision and quality control to ensure an optimal end result. Proultimus is a leading service provider in engineering, procurement, construction and infrastructure space throughout Contract Management Life Cycle i.e. we support our client in Drafting, Negotiation, Approval, Execution, Obligation, Compliance, Amendment/Renewal and close-out of the Contract.
Our contract specialists are expert in FIDIC and CPWD based contract. Contract Management plays pivotal role during execution of Project. Our expert will review your contract document and prepare contractual “Dos and “Don’ts” to be followed by you during your contract execution, prepare letter for Extension of Time, identify all claim events arising out of scope and quantity change, site conditions differing materially from contract data, employer’s delay in – site hand-over, drawing approval, payment, interruption of work by the employer, suspension of work by the employer, disruption of work due to force majeure occurrences, termination of contract, identify any inexcusable delay on your part requiring your attention and action, vet all your critical claim related communications addressed to your employer, vet your letters of defence to contest any counter-claim by your employer.
All the critical communications exchanged between you and your employer including documents supporting claim events will be archived in our searchable cloud based digital contract repository which offers easy retrieval. It is needless to mention that a during dispute the claim statement without supporting documents has no value and will never be admitted by your employer/contractor.
As we have an 30+ arbitration experience so our expert performs task in such a way that if disputes goes into arbitration then there should not be any dearth of documentary evidence.