By J. Rodney Turner
In all however the smallest of tasks the venture sponsor unavoidably has to buy-in the providers of different providers. items and companies has to be acquired, and this calls for humans to make contracts in order that they comprehend the foundation on which they're operating with one another and to house any disagreements that as a consequence come up. which means a data of contracting particularly for undertaking administration is critical if a venture is to prevent problems and succeed in a profitable end. This quantity - which stems from the 3rd version of the "Gower instruction manual of undertaking administration" - concentrates particularly at the contracting concerns that encompass tasks of any dimension.
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2. It ensures that the tenderers do not have to inflate their tender prices by financing charges. In many instances, the rate of interest which the contractor has to pay when borrowing will be higher than that paid by the employer. 3. It gives encouragement to and allows the employer to take advantage of firms 27 CONTRACTING FOR PROJECT MANAGEMENT possessing technical initiative who would otherwise be held back from expanding by lack of liquid cash. 4. The employer minimizes the risk of being saddled with a contractor who has insufficient cash with which to carry out the contract and of having therefore to either support the contractor financially or terminate the contract.
However, these benefits will be obtained only if it has been possible for the contractor to tender realistically. It follows from this that in addition to the general information required by a tenderer, they must be able to assess the following from information provided by the purchaser, their own engineering staff or prior experience of similar work: 1. 2. 3. 22 The ground conditions on the site. Material quantities and specifications. Labour hours and trades both for shop production and on site.
Consequently, the client has no privity of contract, that is no direct contractual relationship with the consultant or works contractors, which places much greater importance on the relationship between the client’s project manager and the management contractor. It is important that there is a degree of trust and common commitment if the contract is to be undertaken to reach its maximum potential benefit. EMERGING PROJECT CONTRACT STRATEGIES During the 1990s, there was a clear trend away from adversarial contracting strategies towards collaborative working, which has direct implications for the role and responsibilities of the project manager.