We don’t have any problems with my contracts. We don’t worry about the contract or what it says. We just put it in the bottom drawer and get on with the job.
We don’t believe in paperwork because both parties to the contract get along so well.
I regularly hear these words and whenever I hear them, I become very worried for the company making that statement. There is a potential looming disaster for either party to the contract under this scenario. Administering your contract properly is sound business sense!
The contract reflects the agreement made by the parties and if it is ignored or not properly administered major risks can occur with major potential costs or delays to the contract works. By not issuing the proper documentation for the administration of the contract, issues are not dealt with and become major risks under the contract.
As a Contractor if variations or delays are not properly documented/claimed within due time and in the format required by the contract they may well be lost resulting in financial penalties for the Contractor. As a Company if issues are not properly closed off and addressed under the contract they may later become major issues resulting in substantial costs and delays incurred later in the contract.
Our contract management training teaches ways to manage the risks and opportunities. We teach personnel to understand the requirements of the contract, the obligations of each party under the contract, how to read and understand a contract clause and how to successfully administer a contract.
