Navigating the complexities of contract management
Managing engineering and construction projects can be complex. There are many reasons for this including the type of project, its location, the laws applicable in that country, as well as the expertise of those assigned to manage it.
So, what is contract management and what does it entail?
Contract management is about managing the agreements developed by the parties. These parties are stakeholders to the contractual agreements which govern the construction or engineering project and they may include contractors, engineers, sub-contractors etc.
The success of a project hinges on many factors. These may include:
- Planning: reviewing and agreeing on the project’s needs as outlined in the contract.
- Procurement: logistics and sourcing.
- Implementation: timeline and on-site management.
- Coordination: working with various teams to ensure supply chain facilitation and no staffing hiccups.
- Evaluation: reviewing issues and creating detail-oriented solutions
- Completion: carrying out inspections and monitoring quality assurance.
The list above is by no means exhaustive. A contract management specialist needs to have a combination of skills, including the ability to effectively communicate, be a problem-solver and be able to think strategically. With good interpersonal skills, this professional will be able to more efficiently navigate the issues that may arise in the projects and talk to the various team members or stakeholders to find effective solutions. This skill also highlights the importance of managing people and resources by building good relations.
Good contract management requires expertise and this will serve as the cornerstone for ensuring that the project is completed on time, is within budget and meets both the established regulatory and quality standards.
Depending on the contract terms and how the role is detailed, a Contract Manager may also be responsible for the legal and regulatory aspects of the project. This means having an overview of the compliance, ensuring the relevant laws and standards are respected and that the project is safeguarded against violations, while avoiding as best possible, undue legal complications.
Contract management is also about managing the project during its entire lifecycle and overseeing the implementation of the various aspects of the project. The contract manager should also be well versed in risk and mitigation measures.
The contract used for the project also has an incredibly important impact on its success. FIDIC, in its longstanding role as a trusted international institution, has a longstanding reputation in the engineering and construction industries. It is also well known for its standard forms of contracts which incorporate balanced and fair contract terms for all the parties in the contract.
It is this well-known standard that gives the assurance that the various FIDIC standard forms of contracts provide the industry with reliable contracts they can use for their projects. From the Red, to the Yellow and Silver books, there are a wide selection of contracts to choose from, as well as advice provided on which contract to use for each project – based on the intention of the parties and the type of project.
Understanding and applying those contracts is the next and also critically important step.
FIDIC offers an international certification in contract management for specialists seeking to broaden their career prospects and showcase their industry expertise which also centres on the use of FIDIC contracts in construction and engineering projects.
This unique certification is one of a kind and provides assurance about a true respect of the industry standards when the FIDIC contracts are used.
To find out more about this FIDIC Certified Contract Manager certification programme, visit our webpage: https://fcl.fidic.org/our-programmes/contract-managers
Applications for this certification are currently open and you can register until 14 March 2025.
