From payment mechanisms and key dates, here are a few top tips for contract survival…
There are many variables to consider when it comes to contracts, and sometimes it can become overwhelming. Not to fear – we have put together a list of top tips on contract survival…
- Read the construction contract and do not sign it if you do not understand it. If you don’t understand it pass to a professional that does. Yes this may cost money upfront, but in the long run it will save you money.
- Understand how the contract requires variations to be notified, priced (possibly need to submit budget costs), how you are instructed (CVI or AI suffice?) and act proactively on these. It is important to have site documentation CVI (confirmation of verbal instruction books), site diaries etc..
- Familiarise yourself with payment mechanism and the key dates associated with (i.e. val dates, payment terms, when payment notices are due, when payless notices are due). It would be advisable to make up a spreadsheet with the key dates in order that none are missed.
- Keep the main contractor informed of costs as they occur and don’t spring any surprises on them, especially at final account stage. When you are preparing interim valuations, always attach a FFA (Forecast Final Account) onto the back). This will be covered in more detail in alter blog,
- Monitor your construction programme for progress on a weekly basis. Have weekly/fortnightly catch-ups with the site team to discuss: slippages, delays, notifications and forecast work for the next 2 weeks
- Take photos at every turn These photos can be: progress, variation work, areas where being hindered by other trades
- Notify the main contractor of any delays to your package at the point they become aware. These will come apparent at your weekly/fortnightly review meetings.
Should you wish to discuss the above in more detail or need assistance with any commercial aspects of your construction projects, please don’t hesitate to contact me, either through my website; www.qsadvisor.com or via e-mail grant@qsadvisor.com
